Rembrandt Paint Company had the following income statement items for the year en
ID: 2479477 • Letter: R
Question
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2013 ($ in 000s):
In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $3.1 million and a gain on disposal of the component’s assets of $5.0 million. 600,000 shares of common stock were outstanding throughout 2013. Income tax expense has not yet been accrued. The income tax rate is 40% on all items of income (loss).
Prepare a multiple-step income statement for 2013, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.)
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2013 ($ in 000s):
Explanation / Answer
Less: Extraordinary exp:
EPS = Income after tax/No. of shares
= 8580000/600000
= $14.30
Particulars Amount (000) Sales 33000 Less: Cost of goods sold 18000 Less: Selling & Admn Cost 4000 Net operating income 11000 Add: Non operative income (Interest) 350 Less: Non operative exp (Interest) 650 Net income after adjusting non-operative income/exp 10700 Add: extraordinary incomes:- extraordinary gain 4500
- Gain on disposal of asset 5000
Less: Extraordinary exp:
- Resructing cost 2300
- Loss on disposal 3100