What could be a difference between net income and operating income besides interests and taxes?
Answer
Income from discontinued operations.
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Open it Sometimes interest and taxes do not represent the only differences between net income and operating income . For example, some companies separately report some income from discontinued operations.<
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2. COMPONENTS AND FORMAT OF THE INCOME STATEMENT significant variations across companies.
Operating profit is sometimes referred to as EBIT (earnings before interest and taxes). However, operating profit and EBIT are not necessarily the same. Note that in both Exhibits 1 and 2, <span>interest and taxes do not represent the only differences between earnings (net income, net earnings) and operating income. For example, both companies separately report some income from discontinued operations.
Exhibit 3 shows an excerpt from the income statement of CRA International (NASDAQ GS: CRAI), a company providing management consulting services. Accordingly, CRA deducts co
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