Question - Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:
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($ millions)
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Year ended 12/31/2015
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Sales revenue
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$1200
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Gain on sale of equipment
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200
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Total Revenue
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1400
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Cost of Goods Sold
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(800)
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Gross Profit
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600
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SG&A Expense
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(400)
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Interest Expense
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(50)
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Operating Income
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150
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Interest Revenue
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20
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Pre-tax income
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170
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Income Tax Expense
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(61)
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Net Income
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109
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What is Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes?
$0
$170
($50)
($30)
$200