Manitoba Snowmobiles, Inc. had sales of $695,000, all received in cash. Total operating expenses were $600,000. All except depreciation were paid in cash. Depreciation of $80,000 was included in the $600,000 of operating expenses. Ignore income taxes.

1. Compute net income and net cash provided by operating activities.

2. Assume that depreciation is tripled. Compute net income and net cash provided by operating activities.