2. 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).

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