Question

Calculate the normalized net income. The selling, general, and administration expense includes a litigation income of 468.0, and the interest expense includes a fine of 155.0. What is the normalized net income?

Answer 1

To calculate the normalized net income, subtract the litigation income and the fine from the net income.

Step-by-step explanation:

The normalized net income can be calculated by adjusting the net income for any exceptional or one-time items. The selling, general, and administration expense includes a litigation income of $468.0, and the interest expense includes a fine of $155.0. To calculate the normalized net income, we need to subtract both the litigation income and the fine from the net income. Let's assume the net income is $X:

Normalized Net Income = Net Income - Litigation Income - Fine

X - 468.0 - 155.0 = Normalized Net Income