Problem:
During 2010, Raines Umbrella Corp. had sales of $920,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $155,000, respectively. In addition, the company had an interest expense of $57,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)
Required:
Question 1: What is Raines's net income for 2010?
Question 2: What is its operating cash flow?
Note: Please provide through step by step calculations.