During the year, the Senbet Discount Tire Company had gross sales of $895,000. The firms cost of

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During the year, the Senbet Discount Tire Company had gross sales of $895,000. The firm’s cost of goods sold and selling expenses were $461,000 and $215,000, respectively. The company also had notes payable of $685,000. These notes carried an interest rate of 4 percent. Depreciation was $108,000. The tax rate was 21 percent.
a. What was the company’s net income?
b. What was the company’s operating cash flow?

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Corporate Finance

ISBN: 9781260772388

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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