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

Question

The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2016: Selling, general, and administrative expenses $ 51,000 Accounts payable 85,000 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, 2016.

Explanation / Answer

Calculation of Operating Income for Spenser Co. for the year ended December 31, 2016 In $ Net Sales          579,000 Less : Expenses :- Cost of goods sold          272,000 Research and development expenses            37,000 Selling, general and administrative expenses            51,000 Operating Income          219,000

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