Question
During the year, the Senbet discount Tire company had gross sales of $1.16 million. The company's costs of goods sold and selling expenses were $535,000,
During the year, the Senbet discount Tire company had gross sales of $1.16 million. The company's costs of goods sold and selling expenses were $535,000, respectively. The company also had debt of $900,000, which carried an interest rate of 6 percent. Depreciation was $140,000. The tax rate was 35 percent.
a. What was the company's net income?
b. What was the company's operating cash flow?
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
