Question: . Given the following income statement data for a local business:Net sales = $16,500Cost of goods sold = $10,350Depreciation = $1120Interest expense = $900Tax rate

. Given the following income statement data for a local business:Net sales = $16,500Cost of goods sold = $10,350Depreciation = $1120Interest expense = $900Tax 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.

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