Question

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands):

Answer 1

Answer:

           Rembrandt Paint Company

Income Statement - December 31, 2021

Sales revenues                                                        $34,000

- Cost of goods sold                                               ($18,500)

Gross margin                                                            $15,500

Operating expenses:

- Selling and adm. expenses           ($4,100)

- Restructuring costs                       ($2,400)

Total operating expenses                                       ($6,500)

Income from operations                                           $9,000

Other revenue and expenses:

Gain on sales of assets                   $5,200  

Interest revenue                                 $420

Loss from discontinued oper.       ($3,200)

Interest expense                               ($620)

Total other revenue and expenses                          $1,800

Net income pre-tax                                                  $10,800

Income taxes (25%)                                                  ($2,700)

Net income after taxes                                              $8,100

Shares outstanding                                                600,000

Earnings per share (EPS)                                           $13.50