Selected information taken from the financial statements of Ford star Co. for the year ended December 31, 2019, follows:
Net cash provided by operations
$
39,000
Cost of goods sold
170,300
Selling, general, and administrative expenses
58,500
Accounts payable
46,800
Dividends paid
81,900
Research and development expenses
35,100
Merchandise inventory
57,200
Provision for income taxes
22,100
Net sales
477,100
Interest expense
53,300
Required:
a. Calculate income from operations (operating income) for the year ended December 31, 2019.
b. Calculate net income for the year ended December 31, 2019.
Selected information taken from the financial statements of Ford star Co. for the year ended December 31, 2019, follows:
| Net cash provided by operations | $ | 39,000 |
| Cost of goods sold | 170,300 | |
| Selling, general, and administrative expenses | 58,500 | |
| Accounts payable | 46,800 | |
| Dividends paid | 81,900 | |
| Research and development expenses | 35,100 | |
| Merchandise inventory | 57,200 | |
| Provision for income taxes | 22,100 | |
| Net sales | 477,100 | |
| Interest expense | 53,300 | |
Required:
a. Calculate income from operations (operating income) for the year ended December 31, 2019.
b. Calculate net income for the year ended December 31, 2019.
Related questions
Selected information taken from the financial statements ofFordstar Co. for the year ended December 31, 2016, follows:
| Net cash provided byoperations | $ | 42,000 |
| Cost of goods sold | 183,400 | |
| Selling, general, andadministrative expenses | 63,000 | |
| Accounts payable | 50,400 | |
| Dividends paid | 88,200 | |
| Research and developmentexpenses | 37,800 | |
| Merchandise inventory | 61,600 | |
| Provision for income taxes | 23,800 | |
| Net sales | 513,800 | |
| Interest expense | 57,400 | |
Required:
a. Calculate income from operations (operatingincome) for the year ended December 31, 2016.
b. Calculate net income for the year endedDecember 31, 2016.
Selected information taken from the financial statements ofVerbeke Co. for the year ended December 31, 2016, follows:
| Gross profit | $413,000 |
| General and administrativeexpenses | 84,000 |
| Net cash used by investingactivities | 107,000 |
| Dividends paid | 54,000 |
| Interest expense | 65,000 |
| Net sales | 741,000 |
| Advertising expense | 76,000 |
| Accounts payable | 102,000 |
| Income tax expense | 81,000 |
| Other selling expenses | 44,000 |
Required:
a. Calculate income from operations (operatingincome) for the year ended December 31, 2016.
b. Calculate net income for the year endedDecember 31, 2016.
