Rembrandt Paint Company had the following income statement items for the year en
ID: 2447472 • 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 $1.8 million and a gain on disposal of the component’s assets of $2.4 million. 600,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss).
Prepare a multiple-step income statement for 2016, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share.Round EPS answers to 2 decimal places.)
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016 ($ in 000s):
Explanation / Answer
EPS = Net Income/Outstanding shares
Net sales 20,000,000 cost of good sold (11,500,000) Gross profit 8,500,000 Interest income 220,000 Interest expense (390,000) Selling and administrative expenses (2,700,000) Restructuring cost (1,000,000) Loss from operations (1,800,000) Gain on disposal 2,400,000 Earnings before tax 5,230,000 Income tax (2,092,000) Net income 3,138,000 Shares outstanding 600,000 EPS 5.23