How to calculate net income from continuing operations?
If I have these items from an income statement: 1. Net revenue (Total revenue- revenue deductions) 2. Gross profit= Net revenue- COGS 3. Net operating profit= Gross profit+ (Financial income- Financial expense)- (Selling expenses- General and administration expenses) 4. Results of other activities= Other income- other expenses 5. Profit before tax= Net operating profit+ Results of other activities+ Share of loss in associates 6. Net profit after tax= Profit before tax- Income tax expense current- Income tax benefit deferred This Net profit after tax also= Minority interest+ equity holder Please show me how to net income from continuing operations Thank you
Can someone explain how to calculate net income and operating income?
This is the information available: - selling, general and administrative expenses $51,000 - accounts payable 85,000 - extraordinary gain from lawsuit settlement, net of tax expense of $28,000 104,000 - research and development expenses 37,000 - loss from discontinued operations net of tax savings of $5,000 16,000 - provision for income taxes 74,000 - net sales 579,000 - interest expense 64,000 - net cash provided by operations 148,000 - cost of goods sold 272,000 How do I calculate operating income and net income? This is my first accounting class.
Calculating Net Operating Income?
The company’s sales manager believes that sales in the Central geographic market could be increased by 18% if monthly advertising were increased by $25,000. Calculate the incremental net operating income. Sales = $670,000 Variable Expenses = $234,500 Traceable Fixed Expenses = $336,000 Common Fixed Expenses not traceable = $177,000 I multiplied Sales by .18 and added $25,000 to Variable expenses but I cant get the right answer.
Calculate income from operations and net income?
Gross profit $414,000 General and administrative expenses 84,000 Net cash used by investing activities 108,000 Dividends paid 54,000 Interest expense 63,000 Net sales 741,000 Advertising expense 75,000 Accounts payable 103,000 Income tax expense 82,000 Other selling expenses 43,000
Discontinued operations Gain on Disposal?
Esquire Comic Book Company had income before tax of $931,100 in 2011 before considering the following materila items: 1) Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $345,100. The division generated before-tax operating income fron the beginning of the year through disposal of $493,000. Neither the loss on disposal nor the operating income is included in the $931,000 before-tax income the company generated from its other divisions. 2) The company incurred restructuring costs of $88,000 during the year. I need to know the Income from continuing operations, Income from operations of discontinued component, income tax expense (20%) , Income on discontinued operations, net income Please help
How to calculate the loss from operations of discontinued component?
Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and on November 15, 2011, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2012. At December 31, 2011, the component was considered held for sale. On December 31, 2011, the company's fiscal year-end, the book value of the assets of the horse division was $250,000. On that date, the fair value of the assets, less costs to sell, was $200,000. The before-tax operating loss of the division for the year was $140,000. The company's effective tax rate is 40%. The after-tax income from continuing operations for 2011 was $400,000. Required: 1. Prepare a partial income statement for 2011 beginning with income from continuing operations. Ignore EPS disclosures. 2. Repeat requirement 1 assuming that the estimated net sales price of the horse division's assets was $400,000, instead of $200,000.
What is the difference between Operating income and Net income?
OPERATING INCOME :-Operating income is the income you generate through your operations. This is your revenue from sales of products and services performed in your daily business operations less the expenses it takes to produce and sell them. Operating income does not take into consideration: income from investments, expenses from financing or taxes, or one-time extraordinary expenses or income items, such as the gain on the sale of an asset.OPERATING INCOME FORMULA :-Operating Income = Gross Income – Operating Expenses – Depreciation & AmortizationNET INCOME :-Net income is the final bottom-line income for your business. If your operating income is $125,000 and you paid $10,000 interest on your loan, $12,000 in taxes, and you had $1,000 in dividend income, your Net Income would be $104,000 ($125,000 +$1 ,000 – $10,000 – $12,000).NET INCOME FORMULA :-Net Income = Operating Income + Investment Income – Interest Expense +One-time Extraordinary Income – One-time Extraordinary Expenses – TaxesWHY ARE THEY DIFFERENT?The reason for the distinction? Operating income represents how the revenue and expenses flow in and out from business operations alone, regardless of whether your business operates on debt or has extra cash reserves. If your operating income is healthy, your business value will likely be healthy regardless of your net income.ByAkbar Khan
What are revenue, operating income, and net income in layman's terms?
Revenue, operating income and net income are metrics that explain how well a business is performing in regard to its primary goal of making a profit. These metrics are reported on a financial statement known as the Income Statement (Are income statements known by any other names?). Here is an example of an Income Statement ...Each of these metrics explains a different aspect of the profit outcome, but collectively they report on the financial performance of the business:Revenue ($85,000 in the example above): is the money that is received by the business from its normal business activities. This typically involves the sale of goods and services to customers. Also known as the top line.Operating Income ($11,000 in the example above): is the income that the business has earned from its primary, day-to-day or core business operations and calculated by subtracting from the revenue the cost of goods sold and selling, general and admin expenses. Non-operating income and non-operating expenses are not subtracted from revenue to calculate operating income.Non-operating (Investment income $500 and Interest expense ($800) in the example above): is the income or expense generated by activities that do not relate to the normal core operations of the business like interest income, investment income, interest charges or other costs of borrowing, currency exchange gains or losses, inventory or equipment obsolescence . Non-operating also includes one-off or unusual income or expenses that does not occur on an ongoing basis like company restructuring costs, lawsuit expense, sale of a subsidiary or division, gains from the disposal of property, plant and equipment for a cash amount that is greater than the the book value.Net Income ($10,700 in the example above): is the income that remains from the operating income after adding the non-operating income and subtracting the non-operating expenses mentioned above.The operating income metric is used when comparing the financial performance of a business with previous years or with similar businesses because it is a more accurate measure of financial performance. Operating income is more accurate because it removes unexpected factors (+ or -) and removes factors that are not a part of the normal trading operations of the business.
Accounting question - discontinued operations?
Hi, can some please help me with this question I have been working on it all day but my answer seems to be wrong: Assume that Shengru Inc. decides to sell CBTV, its television subsidiary, on September 30, 2007. There is a formal plan to dispose of the subsidiary and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of the TV subsidiary are as follows: loss from operations from beginning of year to September 30, $1,300,000 (net of tax) loss from operations from September 30 to end of 2007, $700,000 (net of tax) estimated loss on sale of net assets on disposal date June 1, 2008, $150,000 (net of tax) The year end is December 31. What is the net income/loss from discontinued operations reported in 2007? In 2008? Net income/loss (2007): $ Net income/loss (2008): $ Prepare the discontinued operations section of the income statement for the year ended 2007. Discontinued operations (2007): If the amount reported in 2008 as a gain or loss from disposal of the subsidiary by Shengru Inc. becomes materially incorrect, when and how is the correction reported, if at all?
Is there any difference between EBITDA and operating income?
EBITDA is the amount of earnings generated by a company after interest, taxes, depreciation and amortization are added by in. Some of these expenses (interest and taxes) are not considered operating expenses because they don’t have anything to do with the operations of the company. That is why they are removed in the EBITDA metric. Depreciation and amortization, however, are considered operating expenses because they are necessary to run the operations of the company.Operating income, on the other hand, consists of the revenues from operations and the expenses from operations. Thus, all non-operating expenses are not included like interest and taxes. This calculation is also called EBIT or earnings before interest and taxes.So the main difference between the two is that depreciation and amortization is removed from EBITDA and is left in the calculation for operating income.Also, both metrics are used for slightly different things. Operating income is the actual profit for a company’s operating activities. This is the amount of money a company makes from its core operations.EBITDA is a slight variation that metric used to show a company’s true profit from operations with respect to cash. It’s used gauge a company’s ability to service debt among other things.