Problem: Calculate operating income and net income: the following information is available from the accounting records of Spenser Co. for the year ended December 31, 2004:
Selling, general and administrative expenses $51,000
Accounts payable 85,000
Extraordinary gain from lawsuit, net of tax expense of $28,000 104,000
Research and development expenses 37,000
Loss from discounted operations net of tax savings of $5,000 16,000
Provisions 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
1) Calculate the operating income for Spenser Co. for the year ended December 31, 2004.
2) Calculate the company's net income for 2004.