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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:
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
30,000
Net loss from discontinued operations, net of tax savings of $24,000
60,000
Provision for income taxes.
78,000
Net sales
840,000
Interest expense
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.
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