During the year, the Senbet Discount Tire Company had gross sales of $757,000. The company’s cost of goods sold and selling expenses were $249,800 and $146,000,respectively. The company also had debt of $675,000, which carried an interest rate of 6 percent. Depreciation was $87,000. The tax rate was 35 percent.
a. What was the company’s net income?
b. What was the company’s operating cash flow?