The following income statement does not reflect intraperiod tax allocation. INCOME STATEMENT For the Fiscal Year Ended March 31, 2018 ($ in millions) Revenues $1,010 Cost of goods sold Gross profit Operating expenses |(422) 588 (204) (110) Income tax expense Income before discontinued operations Loss from discontinued operations, net of tax 274 |(109) Net income $ 165 The company's tax rate is 40%. Required: Recast the income statement to reflect intraperiod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

The following income statement does not reflect intraperiod tax allocation. INCOME STATEMENT For the Fiscal Year Ended March 31, 2018 ($ in millions) Revenues $1,010 Cost of goods sold Gross profit Operating expenses |(422) 588 (204) (110) Income tax expense Income before discontinued operations Loss from discontinued operations, net of tax 274 |(109) Net income $ 165 The company's tax rate is 40%. Required: Recast the income statement to reflect intraperiod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following income statement does not reflect Intraperlod tax allocation. Sales revenue Cost of goods sold Gross profit INCOME STATEMENT For the Fiscal Year Ended March 31, 2021 ($ in millions) Operating expenses Income tax expense Income before discontinued operations Loss from discontinued operations Net income Gross profit (loss) The company's tax rate is 25%. Required: Recast the income statement to reflect Intraperlod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions (l.e., 5,500,000 should be entered as 5.5).) Income Statement For the fiscal year ended March 31, 2021 Operating expenses Income from continuing operations before income taxes Net income (loss) Income before discontinued operations $ 874 (434) 440 (208) (23) 289 (140) $ 69 ($ in millions)
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how did they get the Income Before Tax? Proforma Income Statement 1/31/21 Total Revenue $ 28,959,000.00 Cost of Goods $ 15,299,000.00 Gross Profit $ 11,535,000.00 Operating Expenses $ 7,609,000.00 Total Operating Expenses $ 7,609,000.00 Operating Income or Loss $ 3,926,000.00 Interest Expense $ 434,000.00 Income Before Tax $ 3,644,000.00 Income Tax Expense $ 963,000.00 Income from Continuing Operations $ 2,681,000.00 Net Income $ 2,681,000.00
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