Explore BrainMass

Explore BrainMass

    Operating income and net income for Spenser Co.

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Calculate operating income and net income. The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2004:
    Selling, general, and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,000
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000
    Extraordinary gain from early retirement of bonds,
    net of tax expense of $28,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,000
    Research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000
    Loss from discontinued operations net of tax savings of $5,000 . . . . . . . . . . . . . . . . 16,000
    Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,000
    Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579,000
    Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,000
    Net cash provided by operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,000
    Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272,000
    Required:
    a. Calculate the operating income for Spenser Co. for the year ended December 31, 2004.
    b. Calculate the company's net income for 2004.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:11 pm ad1c9bdddf
    https://brainmass.com/business/accounting/operating-income-and-net-income-for-spenser-co-33873

    Attachments

    Solution Summary

    The solution calculates operating income and net income for Spenser Co. given the information available from the accounting records.

    $2.49

    ADVERTISEMENT