Net Income and OCF. During 2010, Brick Paving Limited had sales of $2 700 000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1 690 000, $365 000 and $530 000, respectively. In addition, the company had an interest expense of $210 000 and a tax rate of 30%. (Ignore any tax loss carry-back or carry-forward provisions.)
a. What is Brick's net income for 2010?
b. What is its operating cash flow?
c. Explain your results in a and b.