LEVON is an online education company. At the end 2018 they acquired their biggest competitor. They started recognizing revenue for the acquisition in 2019 A portion of their income statement appears below:

	2017	2018	2019
Sales	4096.7	4885.1	7401.8
COGS	2580.9	3077.6	5181.3
Operating Income	1515.8	1807.5	2220.5
Impairment of Goodwill	0	0	500

a. The CEO of LEVON is quite excited about the increase in operating income in 2019 that occurred after their acquisition. Are you as excited as LEVON’s CEO? Why or why not?

b. What does the impairment of goodwill tell you and how does the impairment of goodwill impact net income? Explain.

Answer rating: 100% (QA)

a In the given data it is visible that there is increase in sales in 2019and there is ... View the full answer