Net Income and OCF [LO2] During 2009, Raines Umbrella Corp. had sales of S730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $105,000, and...

Extracted text: Net Income and OCF [LO2] During 2009, Raines Umbrella Corp. had sales of S730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $105,000, and S135.000, respectively. In addition, the company had an interest expense of $75,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) a. What is Raines's net income for 2009? b. What is its operating cash flow? c. Explain your results in (a) and (b). Accounting Values versus Cash Flows (L04 In Problem 19, supposc Raines Umbrella Corp, paid out $25,000 in cash dividends. Is this possible? If spending on net fixed asseIs and net working capital was zero, and if no new stock was issued during the year, what do you know about the firm's long-term debt account?