Zarqa Company started its business in February 2001 producing and selling mix of pharmaceutical products. At the end of 2019, the company reported JOD 730,000 as sales revenues. The company's gross profit from operating activities was 20% of sales revenues. Moreover, the company's selling and administrative expenses were JOD 101,000 and company's depreciation expenses were JOD 135,000.

Zarqa Company is relying on debt to manage different activities, so the company reported JOD 75,000 as interest expenses. The tax rate for 2019 was 35%.

The Chief Executive Officer of the company is very concerned about the profitability and liquidity of the company, so he asked you as the Financial Manager of the company:

1. To assess the net income and operating cash flow for 2019 and explain to the findings to help the CEO in better understanding the difference between company's income and operating cash flow.

2. The Chief Executive Officer is planning to pay out JOD 25,000 as dividends in 2019. So, he asked you to advise him if the company can pay out JOD 25,000 as cash dividends in 2019 and why?