Popes Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended.

Accounts receivable	$	32,600
Depreciation expense		11,900
Land		25,400
Cost of goods sold		86,000
Retained earnings		56,500
Cash		9,000
Equipment		70,000
Supplies		5,200
Accounts payable		22,000
Service revenue		24,900
Interest expense		2,300
Common stock		9,000
Income tax expense		22,437
Accumulated depreciation		43,000
Long-term debt		38,000
Supplies expense		13,600
Merchandise inventory		26,300
Sales revenue		172,000

a. Calculate the earnings from operations (operating income) for the year ended December 31, 2016.