1. Given the following income statement data for a local business: Net sales = $16,500 Cost of goods sold = $10,350 Depreciation = $1120 Interest expense = $900 Tax rate is 34% a. Calculate net income b. Calculate operating cash flow C. Is this company able to cope with a short-term downturn in profitability? Explain your answer. 2. A firm has recently purchased equipment at a cost of $250,000 with a CCA rate of 25%. Under the Half Year rule, what is the amount of depreciation that the firm can claim as a tax deductible expense in its second year