hi guys,
in the question 44 in curriculum, reading 21-inventory, explaination as detail:
Rolby’s adjusted net proft margin must be computed using net
income (NI) under FIFO and excluding charges for increases in valuation
allowances.
NI (adjusted) = NI (FIFO method) + Charges, included in cost of goods
sold for inventory write-downs, after tax
= $327 million + 15 million × (1 – 30%)
= $337.5 million
i think that ni adjusted = ni - 15 x ( 1 -30%) but the answer is ni adjusted = ni + 15 x (1-30%)
Could you explain it for me.
thank you!
what you wanted to ask?
I think net income adjusted = net income - 15*(1-tax) but the answer is that net income adjusted = net income + 15*(1-tax).
Could you explain it for me.
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