Question

During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $454,000, $99,000, and $144,500, respectively. In addition, the company had an interest expense of $72,200 and a tax rate of 24 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.)

  

a.	What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.)
b.	What is the company's operating cash flow? (Do not round intermediate calculations.)

Answer 1

Particulars	Amount
sales	$7,39,000.00
cogs	$4,54,000.00
gross profit	$2,85,000.00
adminstrative and sellling exp	$99,000.00
dep	$1,44,500.00
EBIT	$41,500.00
interest	$72,200.00
EBT/net loss	($30,700.00)
cash flow from operating activities
Particulars	Amount
net loss	($30,700.00)
dep	$1,44,500.00
interest	$72,200.00
net cash inflow from operating activity	$1,86,000.00

Note: it is assumed that interest is unpaid