During the year, the Senbet Discount Tire Company had gross sales of $925,000. The firm's cost of

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During the year, the Senbet Discount Tire Company had gross sales of $925,000. The firm's cost of goods sold and selling expenses were $490,000 and $220,000, respectively. Senbet also had notes payable of $740,000. These notes carried an interest rate of 4 percent. Depreciation was $120,000. Senbet's tax rate was 35 percent.

a. What was Senbet's net income?

b. What was Senbet's operating cash flow?

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Corporate Finance

ISBN: 978-0077861759

11th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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