The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2016: Selling, general, and administrative expenses $ 51,000 Accounts payable 85,000 Research and development expenses 37,000 Loss from discontinued operations, net of tax savings of $5,000 16,000 Provision for income taxes 74,000 Net sales 579,000 Interest expense 64,000 Net cash provided by operations 148,000 Cost of goods sold 272,000 Required: a. Calculate the operating income for Spenser Co. for the year ended December 31, 2016.
The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2016: Selling, general, and administrative expenses $ 51,000 Accounts payable 85,000 Research and development expenses 37,000 Loss from discontinued operations, net of tax savings of $5,000 16,000 Provision for income taxes 74,000 Net sales 579,000 Interest expense 64,000 Net cash provided by operations 148,000 Cost of goods sold 272,000 Required: a. Calculate the operating income for Spenser Co. for the year ended December 31, 2016.
Related questions
Selected information taken from the financial statements of Ford star Co. for the year ended December 31, 2019, follows:
| Net cash provided by operations | $ | 39,000 |
| Cost of goods sold | 170,300 | |
| Selling, general, and administrative expenses | 58,500 | |
| Accounts payable | 46,800 | |
| Dividends paid | 81,900 | |
| Research and development expenses | 35,100 | |
| Merchandise inventory | 57,200 | |
| Provision for income taxes | 22,100 | |
| Net sales | 477,100 | |
| Interest expense | 53,300 | |
Required:
a. Calculate income from operations (operating income) for the year ended December 31, 2019.
b. Calculate net income for the year ended December 31, 2019.
Selected information taken from the financial statements ofFordstar Co. for the year ended December 31, 2016, follows:
| Net cash provided byoperations | $ | 42,000 |
| Cost of goods sold | 183,400 | |
| Selling, general, andadministrative expenses | 63,000 | |
| Accounts payable | 50,400 | |
| Dividends paid | 88,200 | |
| Research and developmentexpenses | 37,800 | |
| Merchandise inventory | 61,600 | |
| Provision for income taxes | 23,800 | |
| Net sales | 513,800 | |
| Interest expense | 57,400 | |
Required:
a. Calculate income from operations (operatingincome) for the year ended December 31, 2016.
b. Calculate net income for the year endedDecember 31, 2016.
