Calculate income from operations and net income Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2010, follows:
|
Gross profit
|
$412,000
|
|
General and administrative expenses.
|
83,000
|
|
Net cash used by investing activities
|
106,000
|
|
Dividends paid.
|
51,000
|
|
Extraordinary loss from an earthquake, net of tax savings of $25,000
|
61,000
|
|
Net sales
|
741,000
|
|
Advertising expense
|
76,000
|
|
Accounts payable
|
101,000
|
|
Income tax expense
|
83,000
|
|
Other selling expenses.
|
42,000
|
a. Calculate income from operations (operating income) for the year ended December 31, 2010.
b. Calculate net income for the year ended December 31, 2010.