Calculate income from operations and net income Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2013, follows:
|
Net cash provided by operations
|
$ 49,000
|
|
Cost of goods sold
|
155,000
|
|
Selling, general, and administrative expenses
|
62,000
|
|
Accounts payable
|
45,000
|
|
Dividends paid
|
68,000
|
|
Research and development expenses
|
15,000
|
|
Merchandise inventory
|
39,000
|
|
Provision for income taxes
|
420,000
|
|
Net sales
|
32,000
|
|
Interest expense
|
|
a. Calculate income from operations (operating income) for the year ended December 31, 2013.
b. Calculate net income for the year ended December 31, 2013.