Question

Calculate the operating income for Manahan Co. for the year ended December 31, 2016.

Calculate the company's net income for 2016.

The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2016:

Net cash provided by financing activities	$	113,000
Dividends paid		18,200
Loss from discontinued operations, net of tax savings of $36,767		110,300
Income tax expense		24,746
Other selling expenses		14,500
Net sales		642,100
Advertising expense		47,400
Accounts receivable		61,200
Cost of goods sold		365,997
General and administrative expenses		143,500

Answer 1

Solution:

Computation of operating income and net income
For the year ended 2016
Particulars		Amount
Net sales		$642,100.00
Cost of goods sold		$365,997.00
Gross Profit		$276,103.00
Operating expenses:
Advertising expense	$47,400.00
Other selling expense	$14,500.00
General and administrative expenses	$143,500.00
Total operating expenses		$205,400.00
Operating income		$70,703.00
Loss from discontinued operations, net of tax		$110,300.00
Income before taxes		-$39,597.00
Income tax expense		$24,746.00
Net Income		-$64,343.00