QUESTION 39

1. During 2004, the Abel Co. had gross sales of $500,000. The firm's cost of goods sold and selling expenses were $150,000 and $50,000, respectively. These figures do not include depreciation. Abel also had notes payable of $1,000,000. These notes carried an interest rate of 10 percent. Depreciation was $100,000. Abel's tax rate in 2004 was 35%. What was Abel's net income?

$57,500

$62,500

$63,500

$65,000

$67,500

1 points

QUESTION 40

1. In the above question, what was Abel's operating cash flow?

$175,000

$200,500

$233,500

$265,000

$337,500