Problem

Calculate income from operations and net income Selected information taken from the financ...

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. (Hint: You may wish to review Exhibit 2-2.)


b. Calculate net income for the year ended December 31, 2010.

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