Rembrandt Paint Company had the following income statement items for the year en
ID: 2548344 • Letter: R
Question
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018 ($ in 000s) 27,000 Cost of goods sold Net sales Interest income Interest expense 290 Selling and administrative expenses 530 Restructuring costs $ 15,000 3,400 1,700 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.5 million and a gain on disposal of the component's assets of $3.8 million. 600,000 shares of common stock were outstanding throughout 2018, Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss) Required: Prepare a multiple-step income statement for 2018, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.) REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2018 ($ in thousands, except per share amounts)Explanation / Answer
REMBRANDT PAINT COMPANY
Income statement
for the year ended December 31 2018
1.30
REMBRANDT PAINT COMPANY
Income statement
for the year ended December 31 2018
sales 27000 less:cost of goods sold (15000) Gross margin 12000 less:selling and administrative expense (3400) Restructuring cost (1700) (5100) Operating income 6900 other income /(expense) Interest Income /(expense) [290-530] (240) Income from continuing operations before income tax 6660 less Income tax [ 6660*.40] (2664) Income from continuing operations after income tax 3996 Discontinued operations loss from operations net of tax [-2,500(1-.40)] -1,500 Gain on disposal [3,800(1-.4) ] 2280 Income from discontinued operations 780 Net Income 4776 Earning per share Income from continuing operations after income tax [3996/600] $ 6.66 Income from discontinued operations [780/600]1.30
Net Income $ 7.96 per share