### Income Statement Information for Rembrandt Paint Company**Year Ended December 31, 2021 ($ in thousands)****Revenues and Expenses:**- **Sales Revenue:** $18,000- **Interest Revenue:** $100- **Cost of Goods Sold:** $10,500- **Selling and Administrative Expense:** $2,500- **Interest Expense:** $300- **Restructuring Costs:** $800**Additional Information:**- During the year, Rembrandt Paint Company completed the disposal of its plastics business, incurring a loss from operations of $1.6 million and a gain on the disposal of the component’s assets of $2 million.- 500,000 shares of common stock were outstanding throughout 2021.- The income tax expense has not yet been recorded.- The income tax rate is 25% on all items of income (loss).**Required:**Prepare a multiple-step income statement for 2021, including EPS (Earnings Per Share) 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.)****Note**The breakdown of the income statement should include the correct calculation of net income considering all provided revenues, expenses, gains, losses, and taxes. It also should calculate the earnings per share based on 500,000 shares of common stock outstanding.### Detailed Guide:1. **Calculate Gross Profit:** Gross Profit = Sales Revenue - Cost of Goods Sold2. **Calculate Operating Income:** Operating Income = Gross Profit - Selling and Administrative Expense - Restructuring Costs3. **Calculate Income Before Taxes:** Income Before Taxes = Operating Income + Interest Revenue - Interest Expense4. **Calculate Income from Continuing Operations (Before Tax):** Combine Income Before Taxes with any additional income sources or adjustments.5. **Calculate Income Tax Expense:** Income Tax Expense = 25% of Income from Continuing Operations (Before Tax)6. **Calculate Income from Continuing Operations (After Tax):** Income from Continuing Operations (After Tax) = Income from Continuing Operations (Before Tax) - Income Tax Expense7. **Account for Discontinued Operations:** Include the loss from operations of the disposed business and gain on the disposal of the assets.8. **Earnings Per Share (EPS):** EPS =

A multi-step statement of income divides total income and expenses into operating and quasi…

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): $ 18,000 Cost of goods sold Sales revenue Interest revenue 100 300 Selling and administrative expense Restructuring costs $ 10,500 2,500 800 Interest expense 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 component's assets of $2 million. 500,000 shares of common stock were outstanding througho 2021. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss). Required: Prepare a multiple-step income statement for 2021, 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, 2021 ($ in thousands): $ 18,000 Cost of goods sold Sales revenue Interest revenue 100 300 Selling and administrative expense Restructuring costs $ 10,500 2,500 800 Interest expense 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 component's assets of $2 million. 500,000 shares of common stock were outstanding througho 2021. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss). Required: Prepare a multiple-step income statement for 2021, 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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