The Flying Lion Corporation reported the following data on the income statement of one of its divisions. Flying Lion Corporation has other profitable divisions.
|
20X2 |
20X1 |
|
|
Net sales |
$800,000 |
$500,000 |
|
Cost of goods sold |
560,000 |
320,000 |
|
Operating expenses |
75,000 |
56,000 |
|
Depreciation |
300,000 |
200,000 |
|
Tax rate (%) |
30 |
30 |
a. Prepare an income statement for each year.
b. Determine the operating cash flow during each year.