Problems All applicable Problems are available in Connect. Calculate operating i

Question

Problems All applicable Problems are available in Connect. Calculate operating income and net income The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2016: Net cash provided by financing activities Dividends paid Loss from discontinued operations, net of tax savings of $70,000. Income tax expense Other selling expenses. Net sales, Advertising expense Accounts receivable Cost of goods sold General and administrative expenses. $168,000 27,000 155,000 39,000 20,000 966,000 67,000 186,000 552,000 214.000

Explanation / Answer

CALCULATION OF THE OPEARING INCOME AND NET INCOME PARTICULARS AMOUNT AMOUNT Net Sales $       9,66,000 Less: Cost of Goods sold $       5,52,000 Gross Profit $       4,14,000 Less: Operating Expenses Other Selling Expenses $                   20,000 Advertising Expenses $                   67,000 General and administrative expenses $                2,14,000 $       3,01,000 Operating Income $       1,13,000 Extraordinary Items Loss from discontinious operations( $ 155,000 - $ 70,000) = $           85,000 Net Income $           28,000

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