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Question TU Not yet answered Points out of 2 P Flag question Given the facts below, what would be the adjustment to reported net income
Question TU Not yet answered Points out of 2 P Flag question Given the facts below, what would be the adjustment to reported net income in order to arrive at normalized net income? Income Statement (5 in millions) Sales Cost of Goods Sold Gross Profit $1,612.7 998.9 613.8 SG&A Expense Loss on Sale of Division EBITDA 355.3 71.4 187.1 Depreciation & Amortization EBIT 397 147.4 Interest Expense Interest (Income) Pretax Income 19,6 (26) 130.4 Income Taxes Net Income 46.9 $83.5 Note 1. During the 4th quarter, the Company incurred a charge to cost of goods sold of $220 milion (514.1 milion after tax) due to a restructuring related inventory writedown Note: Assume a tax rate of 36.0% Select one: O a. Reported net income would need to increase by $59.8 million b. Reported net income would need to decrease by $59.8 million O c. Reported net income would need to increase by $14.1 million O d. Reported net income would need to increase by $45.7 million O e. None of the listed answers
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