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During the year, the Russel Discount Tire Company had gross sales of $1.2 million. The firms cost of goods sold and selling expenses were $450,000
During the year, the Russel Discount Tire Company had gross sales of $1.2 million. The firms cost of goods sold and selling expenses were $450,000 and $225,000, respectively. Russel also had notes payable of $900,000. These notes carried an interest rate of 9 percent. Depreciation was $110,000. Russel's tax rate was 35 percent. 1. What was Russel's net income? 2. What was Russels operating cash flow?
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