Question

During the year ended December 31, 2021, Halo had sales of $3,000, cost of goods sold of $1,200, and sales, general and administrative expenses of $200. In addition, Halo is involved in a restructuring process expected to last several years, and incurred restructuring costs in 2021 of $100. During the year the company also sold various investments for a net pre-tax loss of $60, and received $40 in dividends from investments. In addition, it incurred $50 of loss on inventory write-down due to obsolescence. What amount of operating income and nonoperating income/expenses will Halo present in its 2021 income statement?

Answer 1

Sales - $3,000

COGS - $1,200

Loss of inventory - $50

Sales & Admin exps - $200

Operating income $1,550

Income from sale of investments - $60

Dividend income - $40

Non operating income $100

Restructuring cost is an extra ordinary items and cannot be part of Operating or Non Operating income