Calculate operating income and net income The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2010:
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Selling, general, and administrative expenses
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$ 51,000
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Accounts payable
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85,000
|
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Extraordinary gain from lawsuit settlement, net of tax expense of $28,000.
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104,000
|
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Research and development expenses
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37,000
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Loss from discontinued operations net of tax savings of $5,000
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16,000
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Provision for income taxes.
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74,000
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Net sales
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579,000
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Interest expense
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64,000
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Net cash provided by operations
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148,000
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Cost of goods sold
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272,000
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Required:
a. Calculate the operating income for Spenser Co. for the year ended December 31, 2010.
b. Calculate the company's net income for 2010.