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 $1.6 million and a gain on disposal of the component’s assets of $2 million.
500,000 shares of common stock were outstanding throughout 2013. Income tax expense has not yet been
accrued. The income tax rate is 30% on all items of income (loss).
Required:
Prepare a multiple-step income statement for 2013, including EPS disclosures.
Answer:
REMBRANDT PAINT COMPANY
Income Statement
For the Year Ended December 31, 2013
($ in thousands, except per
share amounts)
Sales revenue ........................................................................... $18,000
Cost of goods sold ................................................................... 10,500
Gross profit ............................................................................. 7,500
Operating expenses:
Rembrandt Paint Company had the following income statement items for the year ended December 31,
2013
($ in 000s):
In addition, during the year the company completed the disposal of its plastics business and incurred a
loss from operations of $1.6 million and a gain on disposal of the component’s assets of $2 million.
500,000 shares of common stock were outstanding throughout 2013. Income tax expense has not yet been
accrued. The income tax rate is 30% on all items of income (loss).
Required:
Prepare a multiple-step income statement for 2013, including EPS disclosures.
Answer:
REMBRANDT PAINT COMPANY
Income Statement
For the Year Ended December 31, 2013
($ in thousands, except per
share amounts)
Sales revenue ........................................................................... $18,000
Cost of goods sold ................................................................... 10,500
Gross profit ............................................................................. 7,500
Operating expenses:
