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?