A company provided the following GAAP and non-GAAP information:
Income Statement (GAAP) | |
($ in millions) | 2019A |
Revenue | 732 |
Cost of goods sold (excl. SBC) | 149 |
Gross profit | 583 |
Research & development | 121 |
Other operating expenses | 406 |
Operating profit | 56 |
Interest expense | 145 |
Other expenses | 17 |
Pretax profit | (106) |
Taxes | (15) |
Net income | (91) |
Non-GAAP Operating profit | |
($ in millions) | 2019A |
GAAP Operating profit | 56 |
Amortization of purchased intangible assets | 6 |
Stock based compensation | 51 |
Restructuring expenses | 184 |
non-GAAP operating profit | 297 |
non-GAAP Net income | |
($ in millions) | 2019A |
GAAP Net income | (91) |
Amortization of purchased intangible assets | 6 |
Stock based compensation | 51 |
Restructuring expenses | 184 |
Losses on investments | 14 |
Tax impact of non-GAAP items | (65) |
non-GAAP Net income | 99 |
Stock based compensation | |
($ in millions) | 2019A |
Cost of goods sold | 16 |
Research & development | 12 |
Other operating expenses | 23 |
Stock based compensation | 51 |
Amortization of purchased intangible assets | |
($ in millions) | 2019A |
Cost of goods sold | 5 |
Other operating expenses | 1 |
Amortization of purchased intangible assets | 6 |
Cash flow statement | |
($ in millions) | 2019A |
GAAP net income | 346 |
Depreciation and amortization | 108 |
Stock based compensation | 51 |
Changes in working capital | 8 |
Other | 9 |
Cash from operations | 522 |
The company above defines adjusted EBITDA is defined as operating profit before depreciation and amortization and excluding non-GAAP items. Based on the information provided, what is 2019 adjusted EBITDA?
answer is option C $399 million
adjusted EBITDA = operating profit + Depreciation and amortization+Stock based compensation+Restructuring expenses = 56+108+51+184 = $399 million
A company provided the following GAAP and non-GAAP information: Income Statement (GAAP) ($ in millions) 2019A...
Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. April 26, 2019 $30,557 9,155 2,330 10,418 1,764 Consolidated Statement of Income, 12 Months Ended ($ millions) Net Sales Costs and expenses Cost of products sold Research and development expense Selling, general, and administrative expense Amortization of intangible assets Restructuring charges, net Certain litigation charges Other operating expense, net Operating profit Other nonoperating income, net Interest expense Income before income taxes Income tax...
All else being equal, a non-GAAP disclosure that identifies stock-based compensation expense will show Higher non-GAAP operating income than GAAP operating income Lower non-GAAP operating income than GAAP operating income No difference between GAAP and non-GAAP operating income No difference between GAAP and non-GAAP net income
Operating Section of Statement of Cash Flows (Indirect Method) Following are the income statement and balance sheet for Nike Inc. for the year ended May 31, 2019, and a forecasted income statement and balance sheet for 2020. Nike Inc. Income Statement For Year Ended May 31 $ millions 2019 actual 2020 Est. Revenues $ 39,117 $ 42,246 Cost of sales 21,643 23,362 Gross profit 17,474 18,884 Demand creation expense 3,753 4,056 Operating overhead expense 8,949 9,674 Total selling and administrative...
Use the information in the provided Income Statement and Balance Sheet to create the 2017 Statement of Cash Flows and ratio calculations for 2017. Income Statement For the Years Ended December 31, 2017 and 2016 $ in millions 2016 2017 Revenue Net sales Cost of merchandise sold $27,528 37,043 20,807 16,236 16,099 11,429 Gross Profit Operating Expenses Selling, general and administrative Depreciation Amortization 5,757 1,223 124 4,449 5,985 2,499 124 7,752 Operating income Interest expense, net Gain/(Loss) on sale of...
A company reporting under US GAAP seeking to present a more favorable view of operating income in its quarterly earnings release could: Identify a gain on sale in a non-GAAP reconciliation. Identify a restructuring charge (expense) in a non-GAAP reconciliation. Identify a loss in the fair value of an equity investment. Elect to not recognize stock-based compensation on its GAAP income statement. All of the above.
QUESTION 7 Answer saved Marked out of 3.00 PFlag question Compare GAAP and non-GAAP Measures FedEx Corporation reported the following in its 2016 earnings release Dollars in millions, except EPS on-GAAP measure Mark-to-market pension accounting adjustments TNT expenses and operating results Tax impact-corporate restructuring for TNT integration FedEx Ground legal matters FedEx Trade Networks legal matter GAAP measure Net income $3,016 (946) (125) 76 (158) (43) $1,820 Diluted EPS $10.80 (3.39) (0.45) 0.27 (0.57) (0.15) $6.51 What amount did FedEx...
Selected information from Consolidated Income Statement, year ended 31 December 2018 (USD millions); Gross profit 7,200 Other operating expenses 2,900 Operating profit 4,300 Interest income 100 Interest expense 300 Income before taxes 4,100 Income taxes 1,400 Net income 2,700 Other Depreciation and amortization 500 The EBITDA interest coverage ratio is closest to: 16.00x. 9.33x. 14.33x.
Real World Case 4-15 (Static) Income statement format; restructuring costs; earnings per share; comprehensive income; statement of cash flows; Ralph Lauren (L04-1, 4-3, 4-5, 4-6, 4-8] Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of premium lifestyle products, including men's, women's and children's apparel. Below are selected financial statements taken from a recent 10-K filing. RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF INCOME Fiscal Year Ended April 1, 2017 $ 6,652.8 (3,201.7) 3,651.1 ($ in millions,...
Consider the following Income Statement for Zion Distribution. All values are in millions of dollars. Income Statement for Zion Distribution: 2018 2019 $M $M Net Sales 230 240 Cost of sales -160 -184 Gross Profit 70 56 Expenses: Selling, general, and administrative expenses -22 -20 Research and development -8 -7 Depreciation and amortization -4 -3 Other income 4 6 Earnings before interest and taxes (EBIT) 40 32 Interest income (expense) -6 -4 Pre-tax income (EBT) 34 28 Taxes -4...
Refine Assumptions for Dividend and Retained Earnings Forecast Following are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income $ millions) For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expenses 2,330 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit (loss) 6,268 Other nonoperating income,...