LO2 17. Net Income and OCF During the year, Belyk Paving Co. had sales of $1,745,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $880,000, $470,000, and $385,000, respectively. In addition, the company had an interest expense of $195,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) a. What is the company's net income? b. What is its operating cash flow? c. Explain your results in parts (a) and (b).
LO2 17. Net Income and OCF During the year, Belyk Paving Co. had sales of $1,745,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $880,000, $470,000, and $385,000, respectively. In addition, the company had an interest expense of $195,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) a. What is the company's net income? b. What is its operating cash flow? c. Explain your results in parts (a) and (b).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Transcribed Image Text:LO2 17.
Net Income and OCF During the year, Belyk Paving Co. had sales of $1,745,000. Cost of goods sold, administrative and
selling expenses, and depreciation expense were $880,000, $470,000, and $385,000, respectively. In addition, the company had
an interest expense of $195,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provision and assume interest
expense is fully deductible.)
a. What is the company's net income?
b. What is its operating cash flow?
c. Explain your results in parts (a) and (b).
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