Use the Appropriate Information from the Data Provided Below to Calculate

question 20

Essay

Use the appropriate information from the data provided below to calculate operating income for the year ended December 31, 2020.
$\begin{array}{lr}\text { Research and development expenses } & \$ 22,000 \\\text { Loss from discontinued operations } & 8,000 \\\text { Provision for income taxes } & 17,000 \\\text { Net sales } & 255,000 \\\text { Interest expense } & 18,000 \\\text { Net cash provided by operations } & 38,000 \\\text { Gross profit } & 73,000 \\\text { Selling, general and administrative expenses } & 15,000 \\\text { Accounts receivable } & 34,000\end{array}$

---

Definitions:

IFRS

A collection of accounting guidelines formulated by the International Accounting Standards Board (IASB) to assist in the creation of financial statements for public companies worldwide, known as International Financial Reporting Standards.

Installment Sales

A sales method that allows customers to pay for goods or services over a period of time in installments.

Critical Event

A significant occurrence that has a profound impact on an entity's operations or financial performance, necessitating special consideration in accounting and financial reporting.

Measurability Conditions

Criteria that determine when revenue can be recognized in the accounting process, ensuring it can be reliably measured.