The following is the ACME, Inc.’s 2017 income statement (in thousands). Based on the reformulations presented in the course, calculate operating income after tax (OI). Assume AMCE has a marginal tax rate of 40 percent (federal & state). Show your work.
Revenue $10,000
Cost of goods sold (5,000)
SG&A expenses (2,000)
R&D expenses (500)
Restructuring charges (300)
Realized gains on marketable securities 100
Interest income 50
Interest expense (400)
Income tax expense (700)
Net Income $1,250
Operating Income, (OI) after tax _______________________