Calculate income from operations and net income Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2010, follows:
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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
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30,000
|
|
Net loss from discontinued operations, net of tax savings of $24,000
|
60,000
|
|
Provision for income taxes.
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78,000
|
|
Net sales
|
840,000
|
|
Interest expense
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64,000
|
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.