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During 2018, Raines Umbrella Corp. had sales of $742,000. Cost of goods sold, administrative and selling expenses, and deprec
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Answer #1
a)
Sales $         7,42,000
Less:
Cost of goods sold $         4,55,000
Admin expenses $             99,500
Depreciation $         1,45,000
Operating income $             42,500
Less:
Interest expenses $             72,400
Income before tax $           -29,900
Tax $                      -  
Net Loss $           -29,900 (enter as a positive)
b) Operating cash flow = net loss + depreciation
=-29900+145000
=$115100
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