Question

The following information, based on the 12/31/2021 Annual Report to Shareholders of Krafty Foods ($ in millions):

Answer 1

Answer:

Net income$ 1,982

Explanation:

Preparation of income statement for Krafty Foods for the year ended December 31, 2021

Krafty Foods Income Statement For the Year Ended December 31, 2021

($ in millions)

Operating revenues 34,375

Less Cost of goods sold 17,631

Gross profit 16,744

Marketing, general and administration expenses

11,560

Operating income 5,184

(16,744-11,560)

Interest and other debt expense, net

1,537

Income before taxes 3,647

(5,184-1,537)

Income tax expense 1,665

Net income$ 1,982

(3,647-1,665)

Therefore the Net income of the income statement for Krafty Foods for the year ended December 31, 2021 will be $1,982