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Suppose a company has the following adjustments A) Inventory Write-off $3.0M; B) Goodwill Write-off $5.0M; C) Store Closure $4.0M; D) Extraordinary Item - Uninsured Fire
Suppose a company has the following adjustments A) Inventory Write-off $3.0M; B) Goodwill Write-off $5.0M; C) Store Closure $4.0M; D) Extraordinary Item - Uninsured Fire Loss $2.0. Gross up any after-tax adjustments to pre-tax amounts and adjust the Income Statement. JUST FILL IN THE FORM. NO NEED TO SHOW COMPUTATIONS FOR THIS PROBLEM. Hints: Ch 01 Lecture 4. + Ref. Adjmt Adjusted Sales 137.0 COGS 75.0 Gross Profit 62.0 6.3 34.3 Selling & Marketing Other Overhead Extraordinary Item pre-tax Total Overhead Operating Income 40.6 21.4 4.3 17.1 5.1 Less Interest Expense Earnings Before Tax Income Tax @ 30% Income from Continuing Ops. Extraordinary Item Fire Loss Net Income 12.0 3.0 9.0
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