During the year, Belyk Paving Co. had sales of $2,380,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,320,000, $605,000, and $441,000, respectively. In addition, the company had an interest expense of $266,000 and a tax rate of 22 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) a. What is the company's net income? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is its operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net income b. Operating cash flow a. $ 455,000
During the year, Belyk Paving Co. had sales of $2,380,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,320,000, $605,000, and $441,000, respectively. In addition, the company had an interest expense of $266,000 and a tax rate of 22 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) a. What is the company's net income? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is its operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net income b. Operating cash flow a. $ 455,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the year, Belyk Paving Co. had sales of $2,380,000. Cost of goods sold,
administrative and selling expenses, and depreciation expense were $1,320,000,
$605,000, and $441,000, respectively. In addition, the company had an interest expense
of $266,000 and a tax rate of 22 percent. (Ignore any tax loss or carryforward
provision and assume interest expense is fully deductible.)
a. What is the company's net income? (A negative answer should be indicated by a
minus sign. Do not round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
b. What is its operating cash flow? (Do not round intermediate calculations and round
your answer to the nearest whole number, e.g., 32.)
Net income
b. Operating cash flow
a.
$
455,000
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