Selected information taken from the financial statements ofVerbeke Co. for the year ended December 31, 2016, follows:
Gross profit $413,000 General and administrativeexpenses 84,000 Net cash used by investingactivities 107,000 Dividends paid 54,000 Interest expense 65,000 Net sales 741,000 Advertising expense 76,000 Accounts payable 102,000 Income tax expense 81,000 Other selling expenses 44,000
Required:
a. Calculate income from operations (operatingincome) for the year ended December 31, 2016.
b. Calculate net income for the year endedDecember 31, 2016.
Selected information taken from the financial statements ofVerbeke Co. for the year ended December 31, 2016, follows:
| Gross profit | $413,000 |
| General and administrativeexpenses | 84,000 |
| Net cash used by investingactivities | 107,000 |
| Dividends paid | 54,000 |
| Interest expense | 65,000 |
| Net sales | 741,000 |
| Advertising expense | 76,000 |
| Accounts payable | 102,000 |
| Income tax expense | 81,000 |
| Other selling expenses | 44,000 |
Required:
a. Calculate income from operations (operatingincome) for the year ended December 31, 2016.
b. Calculate net income for the year endedDecember 31, 2016.
Related questions
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.
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.
