Calculate the operating cash flow based on your review of the firm's income statement.

How does operating cash flow (OCF) compare to free cash flow (FCF)?

Why is the free cash flow so meaningful to management and investors?

Calculate the sustainable growth rate based on your calculations of return on equity (ROE) and assuming a 60 percent dividend-payout ratio. How can a company increase its sustainable growth rate?

Evaluate the firm's overall financial condition and performance based on your analysis and then address these questions:

Is the company improving or deteriorating over this three-year period?

How does your ratio analysis justify your interpretation?

INCOME STATEMENT Sales Revenue Cost of Sales Gross Profits $ 3,360,000.00 $ 2,724,960.00 $635,040.00 Less: Operating Expenses Selling Expense General S&A Depreciation $ 251,200.00 $ 163,200.00 $48,000.00 Total Operating Expenses $ 462,400.00 $ 172,640.00 $31,200.00 $ 141,440.00 $ 56,576.00 $84,864.00 Total Operating Profit Less: Interest Expense Net Profits Before Taxes Less Taxes (40% Net Profits After Taxes LIQUIDITY RATIOS 2014 1.7 1 2015 Industry Average 2013 1.5 0.9 Current Ratio Quick Ratio 0.9 Operating Cash Flovw n/a n/a