Question

please write it out so i understand how the answer came to be

Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2019, follows: Gross profit General and administrative expenses Net cash used by investing activities Dividends paid Interest expense Net sales Advertising expense Accounts payable Income tax expense Other selling expenses $412,000 82,000 105,000 53,000 62,000 740,000 75,000 104,000 85,000 42,000 Required: a. Calculate income from operations (operating income) for the year ended December 31, 2019. Income from operations b. Calculate net income for the year ended December 31, 2019. Net income

Answer 1

a.	Income from operations:
						$	$
	Gross profit						412000
	Less: Operating expenses
	General and administrative expenses					82000
	Advertising expense					75000
	Other selling expenses					42000
	Total operating expense						199000
	Income from operations						213000
b.	Net income:
						$	$
	Income from operations						213000
	Less:
	Interest expense					62000
	Income tax expense					85000	147000
	Net income						66000
	Net cash used by investing activities,dividends paid and accounts payable are not relevant for computation of income