During 2017, Raines Umbrella Corp. had sales of $809,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $549,000, $136,000, and $85,000, respectively. In addition, the company had an interest expense of $67,000 and a tax rate of 35 percent. (Ignore any tax loss carry-back or carry-forward provisions.)
a. What was the company’s net income for 2017?
b. What was its operating cash flow?
c. Explain your results in (a) and (b).