In 2012, Elway Aerospace Company had gross revenues of $1,200,000 from operations. The following financial transactions were posted during the year:

Manufacturing expenses (including depreciation of $45,000)…………. $450,000

Operating expenses (excluding interest expenses) ………................….$120,000

A new short-term loan from a bank…...........................................………. $50,000

Interest expenses on borrowed funds (old and new) ………................…. $40,000

Old equipment sold…………..................................................................... $60,000

The old equipment had a book value of $75,000 at the time of sale.
(a) What is Elway’s income tax liability?
(b) What is Elway’s operating income?
(c) What is the net cash flow?