Rembrandt Paint Company had the following income statement items for the year en
ID: 2407062 • Letter: R
Question
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016 ($ in 000s):
In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $3.2 million and a gain on disposal of the component’s assets of $5.2 million. 600,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss).
Prepare a multiple-step income statement for 2016, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.)
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016 ($ in 000s):
Explanation / Answer
EPS = Earnings available for shareholder / Number of shareholder
EPS (Income from continuing operations ) = 5214/600 = 8.69
EPS (Income from Discontinued operations ) = 1200 / 600 = 2
REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2016 Sales revenue 34000 Cost of goods sold 18500 Gross profit 15500 Operating expenses Selling and administrative (4100) Restructuring costs (2400) (6500) Operating income 9000 Interest income (expense), net 310 Income from continuing operations before income taxes 8690 Income tax expense 3476 Income from continuing operations 5214 Discontinued operations Income from operations of discontinued component 2000 Income tax expense 800 Income on discontinued operations 1200 Net income 6414 Earnings per share: Income from continuing operations 8.69 Income on discontinued operations 2 Net income 10.69