Prestige Worldwide - Trial balance as of December 31, 2018:

Gross Service Revenue	$ 115,981,250
Bad Debt Expense	$ 2,655,000
Discounts on Sales	$ (3,575,000)
Salaries	$ 55,825,000
Benefits	$ 14,178,292
Administrative	$ 4,342,500
Insurance	$ 325,000
Interest	$ 164,575
Depreciation	$ 3,200,000
Maintenance	$ 435,500
Purchased Services	$ 6,146,500
Rent	$ 2,240,000
Supplies	$ 9,169,813
Utilities-Electricity	$ 356,000
Cash and Cash Equivalents	$ 9,545,000
Short-term Investments	$ 2,750,000
Net Accounts Receivables	$ 7,125,000
Inventory - Supplies	$ 1,135,000
Property and Equipment	$ 90,500,000
Accumulated Depreciation	$ (43,500,000)
Investment Income	$ 94,500
Account Payable	$ 2,375,000
Accrued Expenses	$ 9,125,000
Notes Payable	$ 16,515,000
Contributions Received by Prestige	$ 1,000,000
Long-Term Debt	$ 26,500,000
Retained Earnings	$ 13,040,000

Net revenues will reflect on Financial Statements what the finance organization actually expects to collect. Prestige Worldwide has a tax rate of 25% for 2018.

1. What is the difference between operating margin and net income and why is it important to manage both?
2. What is the estimated Cash Flow using only the income statement or estimate the amount of cash generated during FY 2018 using the income statement. (Cash Flow = Net Income+Noncash expenses). The only Non-cash expense listed is depreciation expense. Why is this calculation Important to Manage?
3. What is the Times Interest Earned Ratio (both definition and in words)? What does it measure and why is it important? What is PWs Times Interest Earned ratio?