Carter Corporation made sales of $725 million during 2014. Of this amount, Carter collected cash for all but $26 million. The company's cost of goods sold was $310 million, and all other expenses for the year totaled $225 million. Also during 2014, Carter paid $375 million for its inventory and $275 million for everything else. Beginning cash was $95 million. Carters top management is interviewing you for a job and they ask two questions:
a. How much was Carter's net income for 2014?
b. How much was Carter's cash balance at the end of 2014?