Question
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): Sales revenue $ 18,000 Cost of
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands):
Sales revenue $ 18,000 Cost of goods sold $ 10,500 Interest revenue 100 Selling and administrative expense 2,500 Interest expense 300 Restructuring costs 800
In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $1.6 million and a gain on disposal of the components assets of $2 million. 500,000 shares of common stock were outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss).
For the Year Ended December 31, 2021 (S in thousands, except per share amounts) Sales revenue 18,000 Cost of goods sold (10,500) Gross profit 7,500 Operating expenses Selling and administrative expenses (2,500) (800) Restructuring costs (3,300) Operating income 4,200 Other income (expense): (200)x Interest expense Other income, net (200) Income from continuing operations before income taxes 4,000 Income tax expense (1,000) Income from continuing operations 3,000 Discontinued operations: 4,000 Income from operations of discontinued component Income tax expense (1,000) Income on discontinued operations 3,000 6,000 Net income Earnings per share: 6.00 Income from continuing operations S 6.00x Income on discontinued operations Net income 12.00Step by Step Solution
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