Chapter 4, Problem 4.24P

Problem 4.24

LO 6. 7

Calculate income from operations and net income Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2016, follows:

Net cash provided by operations	$ 24,000
Cost of goods sold	78,000
Selling, general, and administrative expenses	31,000
Accounts payable	22,000
Dividends paid	34,000
Research and development expenses	8,000
Merchandise inventory	43,000
Provision for income taxes	19,000
Net Sales	210,000
Interest expense	16,000

1. Calculate income from operations (operating income) for the year ended December 31, 2016. (Hint; You may wish to review Exhibit 2-2.}
2. Calculate net income for the year ended December 31, 2016.