During the year, the Senbet Discount Tire Company had gross sales of $1.17 million. The company's cost
Question:
During the year, the Senbet Discount Tire Company had gross sales of $1.17 million. The company's cost of goods sold and selling expenses were $586,000 and $239,000, respectively. The company also had notes payable of $780,000. These notes carried an interest rate of 6 percent. Depreciation was $116,000. The tax rate was 21 percent.
a. | What was the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) |
b. | What was the company's operating cash flow? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) |
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford