Rembrandt Paint Company had the following income statement items for the year en
ID: 2478584 • Letter: R
Question
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2013 ($ in 000s): Net sales $ 31,000 Cost of goods sold $ 17,000 Interest income 330 Selling and administrative expenses 3,800 Interest expense 610 Restructuring costs 2,100 Extraordinary gain 4,300 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.9 million and a gain on disposal of the component’s assets of $4.6 million. 600,000 shares of common stock were outstanding throughout 2013. Income tax expense has not yet been accrued. The income tax rate is 40% on all items of income (loss). Required: Prepare a multiple-step income statement for 2013, 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.)
Explanation / Answer
Net Sales 31000
less: Operating Expenses
Less: Cost of Goods Sold -17000
Less: Selling and Administrative expenese -3800
Less: Restructuring Costs -2100
Operating Income 8100
Add: Interest Income 330
Less: Interest Expenses - 610
Net Profit Before extraoridinary Items 7820
Add: Extraoridinary Income 4300
Income After Extraoridinary Items 12120
Add: other Gains (-2900 +4600) 1700
Income Before Taxes 13820
Less: Income Tax 40% 5528
Income After tax 8292
No. Of Outstanding Shares 600000
EPS (8292 x 1000 / 600000) $ 13.82 per share