Calculate income from operations and net income:
Net cash provided by operation ..............$49,000
Cost of goods sold ...................$155,000
Selling, general, and administrative expenses ........$62,000
Accounts payable ..................$5,000
Extraordinary loss from hurricane, net of tax
Savings $18,000 ................... $68,000
Research and development expenses ...........$15,000
Net loss from discontinued operations, net of tax
Savings of $12,000 ..................$30,000
Provision for income taxes ...............$39,000
Net Sales ......................$420,000
Interest expense ...................$32,000
a. Calculate income from operations (operating income) for the year ended December 31, 2007.
b. Calculate net income for the year ended December 31, 2007.