The Flying Lion Corporation reported the following data on the income statement of one of its divisions. Flying Lion Corporation has other profitable divisions.

a. Prepare an income statement for each year.

b. Determine the operating cash flow during each year.

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Net sales Cost of goods sold Operating expenses Depreciation Tax rate (%) 20X2 20X1 $800,000 $500,000 560,000 320,000 75,000 56,000 300,000 200,000 30 30