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Alejandro Alvera of Alvear Corp was reading the financial statements of Olivas Medical Supply Company to decide whether he wanted to try to acquire the
Alejandro Alvera of Alvear Corp was reading the financial statements of Olivas Medical Supply Company to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Olivas Income Statement:
($ millions) | Year ended 12/31/15 |
Sales revenue | $1600 |
Interest Revenue | 50 |
Total Revenue | 1650 |
Cost of Goods Sold | (800) |
Gross Profit | 850 |
SG&A Expense | (400) |
Interest Expense | (50) |
Operating Income | 400 |
Gain on sale of equipment | 200 |
Pre-tax income | 600 |
Income Tax Expense | (216) |
Net Income | 384 |
What is Olivas' Operating Income for the year ended 12/31/2015 after correcting the mistakes?
$450
$600
$550
$400
$350
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