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On page 12 of the iRobot report, they talk about significant legal costs impacting general and administrative expenses in 2016. Suppose those expenses were as

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On page 12 of the iRobot report, they talk about significant legal costs impacting general and administrative expenses in 2016. Suppose those expenses were as follows, instead of the amounts mentioned in the report that were included in the $66,828 on the income statement: $2250 from a legal situation from a proxy contest $994 in legal costs related to patent litigation If you were a magician, and could make those costs disappear, compute the new net income number for 2016. Assume an overall income tax expense rate of 31.65%, applied to the revised total Income Before Taxes. Assume all other data is as presented in the financial statements, with the exception of the revised general & administrative expenses and the income tax rate. Round your answer to the nearest whole dollar.

Balance Sheet for iRobot All numbers in thousands 12/31/16 12/31/15 Cash Short Term Investments AR Unbilled Revenue Raw Materials Work in Process Finished Goods Other Current Assets 214,523 179,915 33,124 72,909 104,679 452 9,082 39,930 139 4,717 0 45,861 5,591 0 Total Current Assets PP&E Goodwill Intangible Assets Other assets 52,596 9,501 383,670 389,349 26,850 48,751 15,664 41,129 521,743 27,532 41,041 12,207 43,462 507,912 AP Accrued Expenses Salaries Payable Unearned Revenue 67,281 19,854 21,015 4,486 112,636 Total Current Liabilities Long Term Liabilities Common Stock Retained Earnings Total Stockholder's Equity Total Liab & SE 61,655 15,954 15,752 3,265 96,626 7,706 162,016 232,400 185,011 417,411 521,743 226,950 388,966 507,912 Income Statement for iRobot Sales COGS Gross Margin 660,604 616,778 327,852 319,315288,926 341,289 Operating Expenses: Research and Development Selling & Marketing General and Admin 79,805 115,125 66,828 76,071 97,772 54,465 261,758 228,308 Total Operating Expenses Operating Income Other income 57,557 60,618 3,804 2,353 62,971 Income Before Taxes 61,361 19,422 41,939 2,943 Income Tax Expense 18,841 44,130 2,436 Net Income Units Shipped (sold)

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