Problem: Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2010, follows:
Net cash provided by operations...$98,000
Cost of goods sold.........................$310,000
Selling, general, and administrative expenses...$124,000
Accounts Payable....$90,000
Extraordinary loss from hurricane, net of tax savings of $36,000....$136,000
Research and development expenses.....30,000
Net loss from discontinued operations, net of tax savings of $24,000...60,000
Provision for income taxes....78,000
net sales.....840,000
interest expense.....64,000
1) Calculate income from operations (operating income) for the year ended December 31, 2010.
2) Calculate net income for the year ended December 31, 2010.