Question: During the year, the Senbet Discount Tire Company had gross sales of $1.08 million. The firm's cost of goods sold and selling expenses were $527,000 and $217,000, respectively. The firm also had notes payable of $820,000. These notes carried an interest rate of 5 percent. Depreciation was $132,000. The firm's tax rate was 40 percent. What was the firm's net income?

Question: During the year, the Senbet Discount Tire Company had gross sales of $1.08 million. The firm's cost of goods sold and selling expenses were $527,000 and $217,000, respectively. The firm also had notes payable of $820,000. These notes carried an interest rate of 5 percent. Depreciation was $132,000. The firm's tax rate was 40 percent. What was the firm's net income?

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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During the year, the Senbet Discount Tire Company had gross sales of $1.09 million. The company's cost of goods sold and selling expenses were $578,000 and $231,000, respectively. The company also had notes payable of $700,000. These notes carried an interest rate of 6 percent. Depreciation was $108,000. The tax rate was 23 percent. a. What was the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What was the company's operating cash flow? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) a. Net income b. Operating cash flow
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