During the year, the Senbet Discount Tire Company had gross
sales of $1.12 million. The company's cost of goods sold and
selling expenses were $531,000 and $221,000, respectively. The
company also had debt of $860,000, which carried an interest rate
of 6 percent. Depreciation was $136,000. The tax rate was 40
percent.
a. What was the company's net income? (Do not
round intermediate calculations. Enter your answer in dollars, not
millions of dollars, e.g., 1,234,567. Round your answer to the
nearest whole number, e.g., 32.)
Net
income
$
b. What was the company’s operating cash flow? (Do
not round intermediate calculations. Enter your answer in dollars,
not millions of dollars, e.g., 1,234,567. Round your answer to the
nearest whole number, e.g., 32.)
Operating cash flow
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