Problem 2-18 Net Income and OCF During 2015, Rainbow Umbrella Corp. had sales of $750,000....
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Problem 2-18 Net Income and OCF During 2015, Rainbow Umbrella Corp. had sales of $750,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $170,000, respectively. In addition, the company had an interest expense of $60,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) a. What is the company's net income for 2015? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Net income b. What is its operating cash flow? (Do not round intermediate calculations.) Operating cash flow References Worksheet Problem 2-18 Net Income and OCF Problem 5-6 Calculating IRR Compute the internal rate of return for the cash flows of the following two projects (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Year 0 Project A $ 10,300 4,000 4,800 3,600 Project B $ 7,900 2,200 5,700 3,200 Internal rate of return Project A Project B
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