Question

The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash provided by financing activities $ 116,000 Dividends paid 18,300 Loss from discontinued operations, net of tax savings of $38,133 114,400 Income tax expense 25,568 Other selling expenses 14,600 Net sales 645,000 Advertising expense 47,600 Accounts receivable 58,400 Cost of goods sold 367,650 General and administrative expenses 142,100 Required: a. Calculate the operating income for Manahan Co. for the year ended December 31, 2019.

Answer 1

See below

Step-by-step explanation:

a. Operating income statement for the year ended December 31, 2019

Net sales $645,000

Less: Cost of goods sold ($367,650)

Gross profit $277,350

Less: Expenses

Selling, general, administrative expenses ($142,100)

Other selling expenses ($14,600)

Advertising expense ($47,600)

Operating income $73,050

b.

Operating income $73,050

Less:

Income tax expense ($25,568)

Income from continuing operations before taxes $47,482

Loss from discontinued operations, net of savings $38,133 ($14,400)

Net income $33,082