Suppose a company has the following adjustments A) Inventory Write-off $3.0M; B) Goodwill Write-off $5.0M; C)...

 

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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 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 Selling & Marketing 6.3 Other Overhead 34.3 Extraordinary Item pre-tax Total Overhead 40.6 Operating Income 21.4 Less Interest Expense 4.3 Earnings Before Tax 17.1 Income Tax @ 30% 5.1 Income from Continuing Ops. 12.0 Extraordinary Item Fire Loss 3.0 Net Income 9.0 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 Selling & Marketing 6.3 Other Overhead 34.3 Extraordinary Item pre-tax Total Overhead 40.6 Operating Income 21.4 Less Interest Expense 4.3 Earnings Before Tax 17.1 Income Tax @ 30% 5.1 Income from Continuing Ops. 12.0 Extraordinary Item Fire Loss 3.0 Net Income 9.0

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Particulars Ref Adjmt Adjusted Sales 13700 13700 COGS 75... View the full answer