Calculate income from operations and net income selected

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Calculate income from operations and net income Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2010, follows:

Gross profit

$412,000

General and administrative expenses.

83,000

Net cash used by investing activities

106,000

Dividends paid.

51,000

Extraordinary loss from an earthquake, net of tax savings of $25,000

61,000

Net sales

741,000

Advertising expense

76,000

Accounts payable

101,000

Income tax expense

83,000

Other selling expenses.

42,000

a. Calculate income from operations (operating income) for the year ended December 31, 2010.

b. Calculate net income for the year ended December 31, 2010.

Reference no: EM13574529

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