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The following information is available from the accounting records of Manahan Co

ID: 2549887 • Letter: T

Question

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 $37,200 Income tax expense Other selling expenses Net sales Advertising expense Accounts receivable Cost of goods sold General and administrative expenses $ 106,000 19,000 111.600 25,286 14,300 641,500 47,500 55,200 365,655 141,800 Required a. Calculate the operating income for Manahan Co. for the year ended December 31, 2016 MANAHAN CO Operating Income Statement For the year ended December 31, 2016 Expenses b. Calculate the company's net income for 2016

Explanation / Answer

a.

Manahan Co

Operating income statement for the year ended December 31,2016

b.

Operating income $72245

Income tax expense ($25286)

Income before extraordinary item $46959

Loss from discontinued operations ($111600)

Net loss ($64641).

Particulars Amount($) Net sales $641500 Cost of goods sold ($365655) Gross profit $275845 Operating expenses: Other selling expenses ($14300) Advertising expenses ($47500) Selling and administrative expenses ($141800) Operating income $72245