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…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 18BEA

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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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