Selling, general, and administrative expenses were $69,000; net sales were $313,500; interest expense was $7,400; research and development expenses were $32,700; net cash provided by operating activities was $82,200; income tax expense was $7,900; cost of goods sold was $171,600. Required: a. Calculate operating income for the period. b. Calculate net income for the period.

Operating income is $40,200

Net income  is $24,900

Explanation:

The operating income is the net sales minus the costs of goods sold, the selling,general and administrative expenses,research and development expenses.This is known as earnings before interest and tax(EBIT).

The net income is the operating income minus the interest expense as well as the tax expense for the year,which is known as earnings after tax.

Net sales                                                            $313,500

Costs of goods sold                                         ($171,600)

Gross profit                                                        $141,900  

Selling,general and administrative expenses ($69,000)

Research and development expenses            ($32,700)

Operating income                                              $40,200  

Interest expense                                                ($7,400)

income tax expense                                           ($7,900)

net income                                                           $24,900

answer; /// the above statement is (false);