Chia Chia Company has a projected sales volume of RM9,650 for the second year of a proposed expansion project. Costs normally run 60 percent ofsales, or about RM990 in this case. The depreciation expense will be RM100, and the tax rate is 35 percent.

Required:

(a) Calculate the net income of Chia Chia Company.

(b) Calculate the operating cash flow of Chia Chia Company.

(c) Calculate the operating cash flow by using (i) Top-down approach and (ii) Tax shield approach.