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Fofino [41]
3 years ago
5

Problem 4-6 (Algo) Income statement presentation; Discontinued operations; EPS [LO4-1, 4-3, 4-4, 4-5] Rembrandt Paint Company ha

d the following income statement items for the year ended December 31, 2021 ($ in thousands): Sales revenue $ 24,000 Cost of goods sold $ 13,500 Interest revenue 220 Selling and administrative expense 3,100 Interest expense 420 Restructuring costs 1,400 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.2 million and a gain on disposal of the component’s assets of $3.2 million. 600,000 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). 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.)
Business
1 answer:
Masja [62]3 years ago
3 0

Answer and Explanation:

The preparation of the multiple-step income statement is presented below:  

                                        Rembrandt Paint Company

                                               Income Statement  

                           For the Year Ended December 31, 2021  

Sales revenue  $24,000

Less: Cost of goods sold -$13,500

Gross profit  $10,500

Less:

Operating expenses  

Selling and administrative -$3,100

Restructuring costs  -$1,400

Operating Income  $6,000

Add: Interest revenue   $220

Less: Interest expense -$420

Income from Continuing operations before income tax expense and extra ordinary item $5,800

Less: Income tax expense (25%) -$1,450

Income from Continuing operations before extraordinary item $4,350

Discontinued Operations  

Income from operations of discontinued components ($3,200 - $2,200) $1,000

Less: Income tax expense (25%) $250

Income from Discontinued operations $750

Income before extraordinary items $5,100

Extraordinary item  $0

Net Income $5,100

Earning per share  

Income from Continuing operations before extraordinary item ($4,350 ÷ 600 shares) $7.25

Income from Discontinued operations ($750 ÷ 600 shares) $1.25

Extraordinary item  0

Net Income $8.50

We simply deduct all types of expenses and added all types of incomes

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ATT Inc. sells a cordless phone for $ 50 per unit. The unit material cost is $ 10 and unit labor cost is $ 15. The annual manufa
KIM [24]

Answer:

$4,200,000

Explanation:

$C=usp

$15 - uvc

Unit material cost + Unit labor cost ($10+$15)= $25

TFC+$ROI = $2.1 million

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$RLS=84,000*$50=$4,200,000

Therefore the $RLS for the company is

$4,200,000

6 0
4 years ago
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Elise's health insurance policy has a deductible of $500, a $20 copayment on doctor visits, and coinsurance of 10% on all expens
jeyben [28]

Answer:

The correct option is (c).

With the higher deductible, she would have spent at least $300 more than she paid with her actual policy

Explanation:

For her actual policy total expenses;

Deductible =$500

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Coinsurance of 10%= 10/100 ×500=$50

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Total expenses= $3730

With the higher deductible expenses;

Deductible= $1000

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3 years ago
Fast Rocket, Inc. generated a net loss of $5,000 in its first year (2018) and taxable income of $15,000 in its second (2019). As
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$2100

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Net loss = $5000

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3 years ago
Briefly explain the differences between functional, matrix, and project organizations. Describe how each structure affects the m
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The classic function organisation, is a pecking order where every worker has one clearsuperior. Staff individuals are gathered by specialities, for example, generation, promoting, building, and accountingat the top level. Specialties might be additionally subdivided into centered useful units, for example, mechanical and electrical designing. Every department as an utilitarian association will do its venture work autonomously of different offices

Matrix organisation, mirror a mix of practical and projectized characteristics. Matrix organisation can be named feeble, adjusted, or solid relying upon the overall degree of intensity and impact among utilitarian and undertaking chiefs. Powerless framework associations keep up huge numbers of the qualities of a practical association, and the job of the venture director is even more an organizer or expediter.A venture expediter fills in as staff collaborator and correspondences facilitator. The expediter can't settle on or implement choices. Task facilitators have capacity to settle on certain choices, have some position, and report to a more elevated level supervisor. Solid framework associations have a large number of the attributes of the projectized association, and have full-time venture supervisors with extensive position and full-time venture regulatory staff. While the reasonable framework association perceives the requirement for a task supervisor, it doesn't give the venture administrator the full authority over the undertaking and venture financing.

In a projectized organisation, colleagues are regularly colocated. The greater part of the association's resources are engaged with venture work, and undertaking directors have a lot of freedom and authority. Virtualcollaboration strategies are regularly used to achieve the advantages of colocated groups. Projectized organizations often have authoritative units called divisions, however they can either report legitimately to the task director or provide bolster administrations to the different undertakings

How they affect the management

In a functional organisation, extends that exist inside a solitary useful division produce no specific authoritative issues, yet extends that cut across utilitarian divisions can be testing. Why? Tasks that stretch out across practical divisions are requesting to oversee on the grounds that the undertaking director has no direct utilitarian position and should get ceaseless collaboration and backing from useful supervisors of different divisions so as to meet venture goals. This can get confusing.

Since the matrix structure offers position to both venture administrators(project manager) and utilitarian directors(functional manager) the result is to give an increasingly consistent division of work and at last to construct a more grounded group culture. In any case, the potential for struggle between useful supervisors and task administrators still exists on the grounds that there is still asset strife. Everybody who is on a task group still has two supervisors – their practical director and their venture administrator.

In a projectised organisation authority is incorporated. Since ventures are expelled from useful divisions the lines of correspondence are abbreviated. Both these elements upgrade the capacity to settle on quick choices. Undertaking groups build up a solid feeling of character which thusly makes a significant level of responsibility from colleagues. Because of their contribution in successive ventures of a comparable sort projectised associations can create and keep up a long haul assortment of experience and aptitudes in explicit regions.

Obviously projectised organisation make it simpler to run ventures on the grounds that the whole structure is set up for that reason. However, on the off chance that you are dealing with a task inside other hierarchical structures, at that point perceiving and understanding the effects will raise your attention to the potential undertaking the board entanglements, so you can be proactive about settling them. Correspondence, compromise and group building will be vital to your prosperity.

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A company enforces its ethical codes and policies by rewarding ethical behavior and punishing misconduct. Each month, the most e
Olenka [21]

Answer:

The rewards and punishment serve the purpose of motivating the employees.

Explanation: First of all, we must establish that companies should have set guidelines or principles on which they operate, especially when it comes to ethics and acceptable workplace behavior.

Secondly, we must acknowledge the fact that there is always a reward or consequence for our actions. Especially in the workplace where employees are constantly monitored.

Now, based on the Theory X of management that was developed by Douglas McGregor, which basically states that employees are unmotivated and unwilling to work, and as a result of this, they need to be constantly prompted, rewarded or punished to make sure that they complete their tasks.

So to answer the question, the rewards and punishments serve the purpose of motivating the employees to be of good conduct in the workplace, because if this is not done, bad behavior might spread throughout the company and this will cause further problems.

3 0
3 years ago
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