Question
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018 ($ in 000s): Net sales $ 20,000 Cost of
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018 ($ in 000s):
Net sales | $ | 20,000 | Cost of goods sold | $ | 11,500 |
Interest income | 220 | Selling and administrative expenses | 2,700 | ||
Interest expense | 390 | Restructuring costs | 1,000 | ||
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 components assets of $2.4 million. 600,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss). Required: Prepare a multiple-step income statement for 2018, including EPS disclosures. (Any amounts to be deducted, including expenses, should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.)
REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2018 ($ in thousands, except per share amounts) Sales revenue Cost of goods sold Gross profit Operating expenses 20,000 11,500 8,500 Selling and administrative $ (2.700) Restructuring costs (1,000) (3,700) 4,800 Operating income Other income/expense nterest income (expense), net ncome from continuing operations before income taxes ncome tax expense ncome from continuing operations scontinued operations 4,800 4,800 Income from operations of discontinued component Income tax expense ncome from discontinued operations 4,800 et income Earnings per share: ncome from continuing operations ncome from discontinued operations et incomeStep by Step Solution
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