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    Operating income and net income for Spenser Co.

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    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.

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    https://brainmass.com/business/accounting/operating-income-and-net-income-for-spenser-co-33873

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    Solution Summary

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

    $2.19

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