Pepsi, Inc. reported the following income statement for 1999 (in millions) of dollars:Net sales ……….. 20,367Operating expenses …. 117,484Restructuring charge …… (65)Operating profit ……. 2,818Gain on asset sales …… 1,083Interest expense ……. (363)Interest income ……… 118 3,656Provision for income taxes … 1,606Net income ……… 2,050a. Reformulate this statement to distinguish operating items from financing items and operating income from sales from other operating income. Identify operating income after tax. The firm’s statutory tax rate is 36.1 percent.b. Calculate the effective tax rate on operating income from sales.View Solution:
Pepsi Inc reported the following income statement for 1999 in