Calculate operating cash flow-dividend and retained earnings

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1. Building an Income Statement.  Fyre, Inc., has sales of $625,000, costs of $ 260,000, depreciation expense of $79,000, interest expense of $43,000, and a tax rate of 35 percent. What is the net income for this firm? Also, calculate operating cash flow (OCF).

2. Dividends and Retained Earnings. Suppose the firm in Problem 2 paid out $60,000 in cash dividends. What is the addition to retained earnings?

3. Per-Share Earnings and Dividends. Suppose the firm in Problem 3 had 40,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure?

Reference no: EM131329567

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