Question
During the year, the Senbet Discount Tire Company had gross sales of $1.08 million. The companys cost of goods sold and selling expenses were $577,000
During the year, the Senbet Discount Tire Company had gross sales of $1.08 million. The companys cost of goods sold and selling expenses were $577,000 and $230,000, respectively. The company also had notes payable of $690,000. These notes carried an interest rate of 5 percent. Depreciation was $107,000. The tax rate was 22 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.)
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