1. Use the appropriate information from the data provided below to calculate operating income for the year ended December 31, 2011.

Cost of goods sold $117,000

General and administrative expenses48,000

Net cash provided by financing activities 69,000

Dividends paid 16,000

Extraordinary loss from a flood, net of tax savings of $32,00074,000

Income Tax expense11,000

Other Selling Expenses26, 000

Net sales 278,000

Advertising expense39,000

Accounts receivable33,000