Prepare a 2015 income statement for Nike Inc. based on the following information: Nike hadsales of $840,000. Cost of goods sold, administrative and selling expenses, and depreciationexpenses were $680,000 $115,000 and $165,000 respectively. In addition, the company had aninterest expense of $80,000 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions.)
a) What is Nike's net income for 2015?
b) What is Nike's operating cash flow?
c) What could be the reason for the difference in (a) and (b).