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Information available in 2016: Acme International Corporation operates several segments: the leisure segment owns and operates amusement parks, the other segments manufacture home appliances, auto
Information available in 2016: Acme International Corporation operates several segments: the leisure segment owns and operates amusement parks, the other segments manufacture home appliances, auto parts, and personal electronic devices. In year 2016, Acme International's operating profits from all segments totaled $21,500,000. (Note: This $21,500,000 includes the operating results for the leisure segment.) Information available in 2017: On December 1, 2017, the company adopted a plan to sell the leisure segment to Universal Pictures. In the prior year (2016), the leisure segment had an operating loss of $1,350,000. In 2017, the leisure segment incurred an operating loss of $755,000 from the beginning of the year to December 1, and an operating loss of $190,000 for the month of December. Management expects to operate the leisure segment for a $375,000 loss during the first half of 2018 and to sell the segment for a profit of $500,000 in mid-2018. Acme International's income from its manufacturing segments totaled $24,670,000 in 2017. (Note: This $24,670,000 excludes profits and losses of the leisure segment.) Information available in 2018: From 1/1/2018 to its sale in mid-2018, the leisure segment losses were only $255,000. The actual sale was effected on May 15, 2018, at a profit of $560,000. The manufacturing segments earned $32,250,000 in 2018. (Note: The $32,250,000 excludes the leisure segment.) Assume the sale of the leisure segment is considered a component of the business that can be clearly distinguioshed from the rest of the business and its sale represents a strategic shift in the business. All numbers are stated net of appropriate tax effects. That is, you can ignore tax effects for this problem Required: Provide Acme's comparative income statements (partial) for years 2016-2018
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