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	$	101,000
Dividends paid		19,300
Loss from discontinued operations, net of tax savings of $40,200		120,600
Income tax expense		27,817
Other selling expenses		10,800
Net sales		643,900
Advertising expense		45,600
Accounts receivable		58,700
Cost of goods sold		367,023
General and administrative expenses		141,000

MANAHAN CO.
Operating Income Statement
For the year ended December 31, 2019
Net sales		$643,900
Cost of goods sold		(367,023)
Gross profit		$276,877
Expenses:
Other selling expenses	$10,800
Advertising expense	(45,600)
General and administrative expenses	141,000
		106,200
Operating income		$170,677

Calculate the company's net income for 2019.

Answer 1

Operating income statement

Particular	Amount	Amount
Net sales		$643,900
Less: Cost of good sold		($367,023)
Gross profit		$276,877
Less: Expenses
Advertising expenses	$45,600
Other selling expenses	$10,800
General and administrative expenses	$141,000	($197,400)
Opening income		$79,477

Net income statement

	Particular	Amount
A	Operating income	$79,477
B	Income tax expenses	(27,817)
C = (A-B)	Earning after tax	$51,660
D	Loss from discontinued operation	$120,600
E = (C-D)	Net Loss	$68,940