During 2012, Raines Umbrella Corp. had sales of $860,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $110,000, and $125,000, respectively. In addition, the company had an interest expense of $87,000 and a tax rate of 35 percent. (Ignore any tax loss carry back or carry forward provisions.)
a. What is Raines's net income for 2012?
b. What is its operating cash flow?