During the year, the Senbet Discount Tire Company had gross sales of $1.13 million. The firm's cost of goods sold and selling expenses were $532,000 and $222,000, respectively. Senbet also had notes payable of $870,000. These notes carried an interest rate of 8 percent. Depreciation was $137,000. Senbet's tax rate was 30 percent. a. What was Senbet's net income? b.What was Senbet's operating cash flow?

During the year, the Senbet Discount Tire Company had gross sales of $1.13 million. The firm's cost of goods sold and selling expenses were $532,000 and $222,000, respectively. Senbet also had notes payable of $870,000. These notes carried an interest rate of 8 percent. Depreciation was $137,000. Senbet's tax rate was 30 percent. a. What was Senbet's net income? b.What was Senbet's operating cash flow?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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