Calculate operating income and net income The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2010:
|
Selling, general, and administrative expenses |
$ 51,000 |
|
Accounts payable |
85,000 |
|
Extraordinary gain from lawsuit settlement, net of tax expense of $28,000. |
104,000 |
|
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, 2010.
b. Calculate the company’s net income for 2010.