Question
During the year, the Senbet Discount Tire Company had gross sales of $1.07 million. The companys cost of goods sold and selling expenses were $576,000
During the year, the Senbet Discount Tire Company had gross sales of $1.07 million. The companys cost of goods sold and selling expenses were $576,000 and $229,000, respectively. The company also had notes payable of $680,000. These notes carried an interest rate of 4 percent. Depreciation was $106,000. The tax rate was 21 percent. a. What was the companys net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.) b. What was the companys operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started