3. American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were...

 

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3. American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively American also had notes payable with an interest of 4%. Depreciation was $120,000. The tax rate at the time was 35%. a. What is the company's net income? Show work. b. What is the companies operating cash flow? Show work. 3. American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively American also had notes payable with an interest of 4%. Depreciation was $120,000. The tax rate at the time was 35%. a. What is the company's net income? Show work. b. What is the companies operating cash flow? Show work.

Answer rating: 100% (QA)

a To calculate the companys net income we need to subtract the cost of goods sold selling expenses i... View the full answer