2. The following is the ACME, Inc.s 2018 income statement (in thousands). Based on the reformulations presented
Question:
2. The following is the ACME, Inc.’s 2018 income statement (in thousands). Based on the reformulations presented in the course, calculate operating income after tax (OI). Assume AMCE has a marginal tax rate of 25 percent (federal & state). (6 points)
Revenue $10,000
Cost of goods sold (6,000)
SG&A expenses (1,800)
Restructuring charges (255)
Equity share in subsidiary income 100
Realized gains on sale of marketable securities 75
Interest income 30
Interest expense (225)
Income tax expense (600)
Net Income $ 1,325
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren