Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2010,

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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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01,000
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.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting What the Numbers Mean

ISBN: 978-0073527062

9th Edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

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