During the year, the Senbet Discount Tire Company had gross sales of $757,000. The companys cost of
Question:
During the year, the Senbet Discount Tire Company had gross sales of $757,000. The company’s cost of goods sold and selling expenses were $249,800 and $146,000,respectively. The company also had debt of $675,000, which carried an interest rate of 6 percent. Depreciation was $87,000. The tax rate was 35 percent.
a. What was the company’s net income?
b. What was the company’s operating cash flow?
Step by Step Answer:
a The interest expense for the company is the amount of debt times the interest rate ...View the full answer
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Related Video
Interest, debt, finance, and capital markets are all important concepts in the world of economics and business. Interest is the cost of borrowing money, and it is typically expressed as a percentage of the amount borrowed. Debt is the money that is borrowed, and it has to be repaid with interest. Finance is the study of how individuals, companies, and organizations manage their money and investments. Capital markets are the places where companies and governments can raise money by selling stocks and bonds to investors. These markets play an important role in the overall economy by helping to fund investment and growth.
Students also viewed these Business questions
-
During the year the Senbet Discount Tire Company had gross sales of $870 000. The firm's cost of goods sold and selling expenses were 5280.000 and S155 000 respectively. Senbet also had notes payable...
-
During 2015, Lacee Enterprises had gross sales of $247,000. At the end of 2015, Lacee had accounts receivable of $83,000 and a credit balance of $5,600 in Allowance for Bad Debts. Lacee has used the...
-
During 2011, Lacee Enterprises had gross sales of $247,000. At the end of 2011, Lacee had accounts receivable of $83,000 and a credit balance of $5,600 in Allowance for Bad Debts. Lacee has used the...
-
A financial institution can borrow $100 million for 2 years at 3%. It plans to invest this money in a 1-year security with an interest rate of 4.8% per year. Calculate net interest income for the...
-
Cost data for Mix-A-Lot Manufacturing Company for the month ended March 31, 2016, are as follows: Inventories _______________March 1____________________March 31...
-
Differentiate between global advertising and international advertising. Do you think consumers in foreign markets will react favorably to GM's new pop band-fueled Cadillac commercials as do American...
-
Segmental information relating to Dali plc for the year to 31 December 2015 is shown below. Car Aircraft Boat parts parts parts Total Em Em m m Revenues from extemal customers 360 210 85 655...
-
You are the operations manager for American Airlines and you are considering a higher fare level for passengers in aisle seats. You want to estimate the percentage of passengers who now prefer aisle...
-
The red shape has been translated to the blue shape. The translation is x A (x, y)=(x-6, y) B (x, y) = (x-4, y-4) C (x, y) = (x-6, y-6) D (x, y)=(x, y+6) x E (x, y)=(x, y 6) (-3, 4) (3, 4) 3 (-5, 2)...
-
Serena and Bill Davis began operations of their furniture repair shop, Rumours Furniture Inc., on January 1, 2013. The companys fiscal year ends December 31. The trial balance on January 1, 2014, was...
-
The Stancil Corporation provided the following current information: Proceeds from long-term borrowing..................................$16,500 Proceeds from the sale of common...
-
Schwert Corp. shows the following information on its 2017 income statement: sales = $225,000; costs = $103,200; other expenses = $6,100; depreciation expense = $15,300; interest expense = $11,200;...
-
An alloy used in aircraft structures consists of 93.7% Al and 6.3% Cu by mass. The alloy has a density of 2.85 g/cm 3 . A 0.691 cm 3 piece of the alloy reacts with an excess of HCl(aq). If we assume...
-
In an effort to establish controls, a new manager decides to spend one afternoon each week double-checking every chart his nursing care staff has completed for the previous week. (a) In what ways is...
-
Discuss the challenges and opportunities associated with implementing advanced sustainable drainage systems (SuDS) in urban development projects to mitigate the impacts of urbanization on storm water...
-
what extent does proper sleep hygiene contribute to the reduction of stress-related symptoms ? Explain
-
Use the below assignment instructions to make a python program. This program should utilize some of the functions given by card.py and deck.py. Please give all the code necessary to complete the...
-
Provide statistics that show a decline in manufacturing jobs in the United States has not caused manufacturing output to decline and the narrative that we don't make anything here anymore may not be...
-
The range forward contract is specified as follows: at expiry, the holder must buy the asset for E 1 if S < E 1 , for S if E 1 S E 2 and for E 2 if S > E 2 . Find the relationship between E 1 and E...
-
we have to compute the letter grades for a course. The data is a collection of student records stored in a file. Each record consists of a name(up to 20 characters), ID (8 characters), the scores of...
-
Payback and Internal Rate of Return A project has perpetual cash flows of C per period, a cost of I, and a required return of R. What is the relationship between the projects payback and its IRR?...
-
Capital Budgeting in Not-for-Profit Entities Are the capital budgeting criteria we discussed applicable to not-for-profit corporations? How should such entities make capital budgeting decisions? What...
-
Modified Internal Rate of Return One of the less flattering interpretations of the acronym MIRR is meaningless internal rate of return. Why do you think this term is applied to MIRR?
-
An employee receives employer-provided adoption assistance. Which of the following are qualified adoption expenses can be used as an exclusion from income? Question 58Select one: a. Fees related to...
-
One of the flaws of GDP is that it Blank______. Multiple choice question. includes transactions of the underground economy accounts for changes in leisure and product quality accounts for...
-
What is a primary tax obligation for unincorporated NFPOs? Question 4 options: Non-Profit Organization Information Return (T1044) Corporation Income Tax Return (T2) GST/HST and payroll Registered...
Study smarter with the SolutionInn App