During 2019, rainbow umbrella corp. had sales of $940,000. cost of goods sold, administrative and selling expenses, and depreciation expenses were $680,000, $85,000, and $165,000, respectively. in addition, the company had an interest expense of $53,000 and a tax rate of 21 percent. (assume that interest is fully deductible.) a. what is the company's net income for 2019? (a negative answer should be indicated by a minus sign. do not round intermediate calculations.) b. what is its operating cash flow? (do not round intermediate calculations.)

a. - $43,000

b. $10,000

Explanation:

(a) The computation of the net income is shown below:

= Sales - cost of goods sold -  administrative and selling expenses - depreciation expenses -  interest expense - income tax expense

= $940,000 - $680,000 - $85,000 - $165,000 - $53,000 - 0

= - $43,000

The income tax expense should be zero as the amount comes in negative

(b) The computation of the operating cash flow is shown below:

= EBIT + Depreciation

where,

EBIT = Sales - cost of goods sold -  administrative and selling expenses - depreciation expenses

= $940,000 - $680,000 - $85,000 - $165,000

= $10,000 + $165,000

= $175,000

answer: penis

explanation:

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy