Question
During the year, the Senbet Discount Tire Company had gross sales of $547,900. The company's cost of goods sold and selling expenses were $183,800 and
During the year, the Senbet Discount Tire Company had gross sales of $547,900. The company's cost of goods sold and selling expenses were $183,800 and $107,200, respectively. The company also had debt of $490,000, which carried an interest rate of 6 percent. Depreciation was $63,900. The tax rate was 25 percent.
a. What was the company's net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b. What was the companys operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Masters, Inc., has sales of $33,500, costs of $14,440, depreciation expense of $2,240, and interest expense of $1,190. If the tax rate is 21 percent, what is the operating cash flow, or OCF?
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