Prof Wang Jiwei
HOMEWORK #2 Suggested Solutions
Question 1 Determinants of Income
P2-9.Determining missing amounts on income statement
|AJAX Corporation | |Income Statement | |For the Year Ended December 31, 2011 | |($ in thousands) | | | | | | Net revenues |$ 1,275,700 | | | Cost of goods sold |793,358 | | | Gross profit |482,342 | | | Operating expenses | | | | Selling |159,016 | | | General and administrative |176,868 | | | Research and development |97,230 | | | Amortization of intangible assets |7,346 | | | Restructuring costs and asset write-downs |24,444 | | | Total operating expenses |464,904 | | | Operating income |17,438 | | | Interest income |23,944 | | | Interest expense |(13,714) | | | Other income, net |41,660 | | | Income from continuing operations before taxes |69,328 | | | Provision for income taxes |(20,094) | | | Income from continuing operations |49,234 | | | Income from discontinued operations, net of taxes |97,808 | | | Income before extraordinary item |147,042 | | | Extraordinary gain on extinguishment of debt, net of taxes |2,242 | | | Net income |$ 149,284 | | |...