19. Net Income and OCF [LO2] During 2014, Raines Umbrella Corp. had sales of $675,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $435,000, $85,000, and $125,000, respectively. In addition, the company had an interest expense of $70,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) a. What is Raines's net income for 2014? b. What is its operating cash flow? c. Explain your results in (a) and (b). 20. Accounting Values versus Cash Flows [LO4] In Problem 19, suppose Raines Umbrella Corp. paid out $102,000 in cash dividends. Is this possible? If net capital spending and net working capital were both zero, and if no new stock was issued during the year, what do you know about the firm's long-term debt account? Calculating Cash Flows [ 221