Prepare a 2016 income statement for Nike Inc. based on the following information: Nike had sales of $620,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $380,000 $195,000 and $65,000 respectively. In addition, the company had an interest expense of $40,000 and a tax rate of 20 percent. (Ignore any tax loss carryback or carry forward provisions.) a) What is Nikes net income for 2016? $ Answer b) What is Nikes operating cash flow? $ Answer c) What could be the reason for the difference in (a) and (b). depreciation is a non-cash expense and interest is a financing expense depreciation and interest expenses are both operating expenses net income was negative because of the tax deductibility of depreciation and interest expense Check