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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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?
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