Assume that next year Research in Motion sells off its interest in TIP Communica
ID: 2375558 • Letter: A
Question
Assume that next year Research in Motion sells off its interest in TIP Communications (one of its subsidiaries). Forecasted information about the operations for RIM and TIP for that future fiscal year immediately prior to the proposed sale follows:
Millions
RIM*
TIP
Total
Revenues
20,943
1,727
22,670
Operating Expense(t)
20,321
1,971
22,292
*Does not include TIP results. (t)Includes cost of goods sold
Required:
Please do 1 in table form.
Millions
RIM*
TIP
Total
Revenues
20,943
1,727
22,670
Operating Expense(t)
20,321
1,971
22,292
Explanation / Answer
Hi,
Please find the answer as follows:
Part A:
Part B:
The results for TIP indicate negative operating income. As a result of this, RIM decided to sell off its interest in TIP.
Thanks.
RIM TIP Total Revenues 20943 1727 22670 Operating Expenses 20321 1971 22292 Operating Income 622 -244 378