Identifying Operating Income Componehts Following is the income statement information from Apollo Medical Devices. Identify the components that we would consider operating. 2013 ($ in thousands) $4,163,770 1,382,235 27,876 Net sales........ Cost of sales before special charges. Special inventory obsolescence charge.. 1,410,111 Total cost of sales.. 2,753,659 1,570,667 531,086 Gross profit..... Selling, general and administrative expense Research and development expense.. Merger and acquisition costs..... In-process research and development charges. Litigation settlement. 46,914 12,244 16,500 576,248 (57,372) 2,076 Operating profit Interest expense. Interest income.. Gain on disposal of fixed assets Impairment of marketable securities Other income (expense), net. 4,929 (5,222) (2,857) Earnings before income taxes. Income tax expense. 517,802 191,587 Net earnings.... $ 326,215

Identifying Operating Income Componehts Following is the income statement information from Apollo Medical Devices. Identify the components that we would consider operating. 2013 ($ in thousands) $4,163,770 1,382,235 27,876 Net sales........ Cost of sales before special charges. Special inventory obsolescence charge.. 1,410,111 Total cost of sales.. 2,753,659 1,570,667 531,086 Gross profit..... Selling, general and administrative expense Research and development expense.. Merger and acquisition costs..... In-process research and development charges. Litigation settlement. 46,914 12,244 16,500 576,248 (57,372) 2,076 Operating profit Interest expense. Interest income.. Gain on disposal of fixed assets Impairment of marketable securities Other income (expense), net. 4,929 (5,222) (2,857) Earnings before income taxes. Income tax expense. 517,802 191,587 Net earnings.... $ 326,215

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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