Pretax income from continuing operations

Assignment Help Financial Management

Reference no: EM131445298

On December 31, 2016, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2016 was $3.3 million. Pretax income from continuing operations for the year totaled $7.0 million. The income tax rate is 30%.

Prepare the lower portion of the 2016 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.

Reference no: EM131445298

Questions Cloud

Determine the net effect of offering the discount : Zebra company sells $73 million of its products to retailers on creidt terms of net 30. Its average collection period is 55 days. To speed up the collection of receivables the company is considering giving 1.5% cash discounts if customers pay with in..

Using the corporate valuation model : Using the corporate valuation model, you calcualted the value of the company's operations and found it to be $1,300 million. The company's balance sheet show $85 million in accounts receivable,$65million in inventory, and $100 million investments in ..

Expected to provide after-tax operating cash flows : What is the NPV for a project if its cost of capital is 12 percent and its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and ($1,..

What does it mean to say accruals are self-reversing : In this unit we learned to explain how accrual accounting can create opportunities for unethical distortion of performance, compare discretionary and non-discretionary accruals, describe some of the incentives that managers have to manipulate earning..

Pretax income from continuing operations : On December 31, 2016, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The business segment qualifies as a component of the entity according to GAAP. Prepare the lower port..

Two proposals to overhaul its network infrastrucre : AOL is considering two proposals to overhaul its network infrastructure. they have received two bids. the first bid from Huawei will require a $25 million upfront investment and will generate $20 million in savings for AOL each year for the next thre..

Shares outstanding and its effective marginal tax bracket : The 3N Inc. is unlevered and is valued at $640,000. Its’ current beta is equal to 1.2. The risk free rate is 4% and the market risk premium is 6%. 3N is currently deciding whether including debt in its capital structure would increase its value. Unde..

Spot and forward rates for the new zealand dollar : Assume the following spot and forward rates for the New Zealand dollar (US$/NZD). Spot Rate US$ 0.6317 per NZD 30-day forward rate US$ 0.6330 per NZD 90-day forward rate US$ 6353 per NZD a) Suppose you issued a 30-day forward contract to exchange 200..

What is after-tax cost of capital to zephyr for bonds : The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new $1,000 par value bonds at a net price of $930. The coupon interest rate is 15 percent, and the bonds would mature in 15 years. If th..

User Account

All Pages