The Following Information Has Been Provided by Flatiron Company for the Year

question 12

Essay

The following information has been provided by Flatiron Company for the year ended December 31, 2014:
Net income was $71,000;
Income tax expense was $47,000;
Dividends declared and paid totaled $7,500;
Interest expense was $8,700;
Loss on sale of plant assets was $15,000;
Operating expenses totaled $91,000;
Cash collected from customers was $220,000.
How much was Flatiron's operating income?

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Definitions:

20-Year Period

Denotes a time frame of twenty years, often used in the context of loans, investments, or planning horizons.

Book Value

The net value of a company's assets minus its liabilities, often in relation to an individual asset or the company as a whole.

Plant Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Land Improvements

Expenses for enhancements made to a parcel of land to make it more usable, which do not directly include the land itself but, for example, landscaping, parking lots, and fences.