Chapter 4 Homework (10 points) Raja Cosmetics Company had the following income s

Question

Chapter 4 Homework (10 points) Raja Cosmetics Company had the following income statement item 2020 ($ in 000s): s for the year ended December 31, Net sales $26,000 280Selling and administrative expenses 3,300 Cost of goods sold $14,500 Interest income Interest expense 510 Restructuring costs 1,600 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.4 million and a gain on disposal of the component's assets of $3.6 million. 600,000 shares of common stock were outstanding throughout 2020. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss). Required Prepare a multiple-step income statement for 2020, including EPS disclosures. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except e per share. Round EPS answers to 2 decimal places. arnings

Explanation / Answer

Income Statement For the Year Ended December 31, 2020 Sales revenue 26000 Cost of goods sold -14500 Gross profit 11500 Operating expenses Selling and administrative -3300 Restructuring costs -1600 -4900 Operating income 6600 Interest income (expense), net -510 Income from continuing operations before income taxes 6090 Income tax expense -2436 Income from continuing operations 3654 Discontinued operations Income from operations of discontinued component 1200 Income tax expense -480 Income on discontinued operations 720 Net income 4374 Earnings per share: Income from continuing operations 6.09 Income on discontinued operations 7.29 Net income 13.38

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