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Business, 02.06.2020 16:57 davidcstro851

A company reports the following GAAP income statement: Income Statement (GAAP) ($ in millions) 2019A

Revenue 654
Operating expenses 254
Operating profit 400
Interest expense 14
Other expenses 3
Pretax profit 383
Taxes 77
Net income 306

In addition to the GAAP income statement, the company provided a 2019 non-GAAP disclosure identifying:

$12 million in stock-based compensation expense
$7 million in restructuring expenses
$5 million gain on sale

Assuming the company’s effective tax rate applies to non-GAAP items, estimate 2019 non-GAAP net income:

a. $295 million
b. $317 million
c. $323 million
d. $325 million

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A company reports the following GAAP income statement: Income Statement (GAAP) ($ in millions) 2019A...
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