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

Selling, general, and administrative expenses	$	25,500
Accounts payable		42,500
Research and development expenses		18,500
Loss from discontinued operations, net of tax savings of $2,500		8,000
Provision for income taxes		37,000
Net sales		289,500
Interest expense		32,000
Net cash provided by operations		74,000
Cost of goods sold		136,000

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

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