Cash flows: Given the data for Oakland Mills Company in Problem 3.7, compute the cash flows to investors from operating activity.

3.7. Income statement: The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31, 2014: sales of $1.45 million, cost of goods sold of $812,500, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. What is the company's net $ Amount Revences- Cost of Goods Sold (1.45 Million) 1,450,000.00 Cost of Goods sold 812,500.00 Earnings before interest, tax,depreiciation 637,500.00 Depreciation 175,000.00 Earnings before interest and taxes 462,500.00 Interest 89,575.00 Earnings before taxes 372,925.00 Taxes (35%) 130,523.75 Net Income 242,401.25 Companies Net income = $242,401.25