The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2016:

Selling, general, and administrative expenses	$	76,500
Accounts payable		127,500
Research and development expenses		55,500
Loss from discontinued operations, net of tax savings of $7,500		24,000
Provision for income taxes		111,000
Net sales		868,500
Interest expense		96,000
Net cash provided by operations		222,000
Cost of goods sold		408,000

Required:

a. Calculate the operating income for Spenser Co. for the year ended December 31, 2016.

b. Calculate the company's net income for 2016.