Alejandro Alvera of Alvear Corp was reading the financial statements of Olivas Medical Supply Company to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Olivas Income Statement: ($ millions) Year ended 12/31/15 Sales revenue $1600 Interest Revenue $50 Total Revenue $1650 Cost of Goods Sold ($800) Gross Profit $850 SG&A Expense ($400) Interest Expense ($50) Operating Income $400 Gain on sale of equipment $200 Pre-tax income $600 Income Tax Expense ($216) Net Income $384 What is Olivas' Operating Income for the year ended 12/31/2015 after correcting the mistakes? $450 $600 $550 $400 $350
Added by Joshua G.
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Step 1: Calculate Total Revenue Total Revenue = Sales Revenue + Interest Revenue Total Revenue = $1600 + $50 Total Revenue = $1650 million Show more…
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