Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:

Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:

($ millions) Year ended 12/31/2015
Sales revenue $1200
Gain on sale of equipment 200
Total Revenue 1400
Cost of Goods Sold (800)
Gross Profit 600
SG&A Expense (400)
Interest Expense (50)
Operating Income 150
Interest Revenue 20
Pre-tax income 170
Income Tax Expense (61)
Net Income 109

What is Alvear Corp.’s Operating Income for the year ended 12/31/2015 after correcting the mistakes?

A) $0

B) $170

C) ($50)

D) ($30)

E) $200

 
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