For this and the next 4 questions. Consider the income statement below. Calculate retained earnings.

Calculate operating cash flow?

Calculate earnings per share?

Suppose depreciation INCREASES by 80%. Calculate operating cash flow and earnings per share?

Suppose depreciation DECREASES by 80%. Calculate operating cash flow and earnings per share?

Tax rate: T	20%
Sales	500,000
Cost of goods sold	325,000
Gross profit	175,000
Depreciation	4,000
Other expenses	31,000
Total operating expenses	35,000
EBIT	140,000
Interest charges	7,000
EBT	133,000
Taxes	26,600
Net income	106,400
Dividend payout ratio	25%
Stock price: P0	$12
Shares outstanding: n	10,000