Building an Income Statement: During the year, the Senbet Discount Tire Company had gross sales of $865,000. The firms cost of goods sold and selling expenses were $455,000 and $210,000, respectively. The company also had notes payable of $680,000. These notes carried an interest rate of 4 percent. Depreciation was $105,000. The tax rate was 21 percent.

1. What was the companys net income?
2. What was the companys operating cash flow?