1b. Pittsburgh Motors has sales of $767,000 with costs of $587,300. Interest expense is $34,570 and depreciation is $22,600. The tax rate is 21 percent. What is the net income?

a. $57,330.00

b. $60,672.50

c. $96,798.70

d. $106,470.00

e. 112,677.50

1c. Haim Bakery has projected annual net income of $35,470, of which 40 percent will be distributed as dividends. Assume the company will net sales of $5,245 worth of common stock. What will be the cash flow to stockholders if the tax rate is 21 percent?

a. -$11,754

b. -$8,670

c. -$850

d. $2,203

e. $8,943