Question

The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash provided by financing activities Dividends paid Loss from discontinued operations, net of tax savings of $36,600 Income tax expense Other selling expenses Net Sales Advertising expense Accounts receivable Cost of goods sold General and administrative expenses $105,000 20,000 109,800 25, 346 14,200 642,600 47,000 61,880 366,282 142,700 Required: a. Calculate the operating income for Manahan Co. for the year ended December 31, 2019 MANAHAN CO. Operating Income Statement For the year ended December 31, 2019 b. Calculate the company's net income for 2019.

Answer 1

Answer:

Question A Operating Income Statement For the year ended December 31, 2019 Sales Revenue $ 642,600 Less: Cost of Goods Sold $ 366,282 Gross Profit $ 276,318 |(642,600 - Calculation 366,282) Expenses: Advertising Expense $ 47,000 Other Selling Expense $ 14,200 General and Administrative Expense $ 142,700 Total expenses $ 203,900 Operating Income $ 72,418 (276,318 - Calculation 203,900) Net cash provided by financing activities, Dividends Paid, Accounts Receivable will not be required for calculation of operating income or net income. Question B Net Income Calculation: Operating Income $ 72,418 Less: Income Tax Expense $ 25,346 Less: Loss from discontinued operations $ 109,800 Net Income $ (62,728) (It is a net loss)