During the year, the Senbet Discount Tire Company had gross sales of $538,900. The company's cost of goods sold and selling expenses were $178,400 and $104,200, respectively. The company also had debt of $484,000, which carried an interest rate of 6 percent. Depreciation was $62,100. The tax rate was 24 percent. a.What was the company's net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)b.What was the company’s operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net Income = $125,522 Operating cash flow = $ 187,622

Answered: During the year, the Senbet Discount…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During the year, the Senbet Discount Tire Company had gross sales of $538,900. The company's cost of goods sold and selling expenses were $178,400 and $104,200, respectively. The company also had debt of $484,000, which carried an interest rate of 6 percent. Depreciation was $62,100. The tax rate was 24 percent.

a.	What was the company's net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b.	What was the company’s operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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