The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2013:

Selling, general, and administrative expenses	$	71,400
Accounts payable		119,000
Extraordinary gain from lawsuit settlement, net of tax expense of $39,200		145,600
Research and development expenses		51,800
Loss from discontinued operations, net of tax savings of $7,000		22,400
Provision for income taxes		103,600
Net sales		810,600
Interest expense		89,600
Net cash provided by operations		207,200
Cost of goods sold		380,800

Required:

a.	Calculate the operating income for Spenser Co. for the year ended December 31, 2013. Show details and formulas.

b.	Calculate the company's net income for 2013.