During the year, the Senbet Discount Tire Company had gross sales of $1.13 million. The firm's cost of goods sold and selling expenses were $532,000 and $222,000, respectively. Senbet also had notes payable of $870,000. These notes carried an interest rate of 8 percent. Depreciation was $137,000. Senbet's tax rate was 30 percent. a. What was Senbet's net income? b.What was Senbet's operating cash flow?
During the year, the Senbet Discount Tire Company had gross sales of $1.13 million. The firm's cost of goods sold and selling expenses were $532,000 and $222,000, respectively. Senbet also had notes payable of $870,000. These notes carried an interest rate of 8 percent. Depreciation was $137,000. Senbet's tax rate was 30 percent. a. What was Senbet's net income? b.What was Senbet's operating cash flow?
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 $1.13 million. The firm's cost of
goods sold and selling expenses were $532,000 and $222,000, respectively. Senbet also had notes payable
of $870,000. These notes carried an interest rate of 8 percent. Depreciation was $137,000. Senbet's tax
rate was 30 percent.
a. What was Senbet's net income?
b.What was Senbet's operating cash flow?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42885075-5b0e-48cf-9602-9ddec1cd45e6%2F1bd6072c-9e1c-4834-a922-b545a9620cab%2Fep86wig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During the year, the Senbet Discount Tire Company had gross sales of $1.13 million. The firm's cost of
goods sold and selling expenses were $532,000 and $222,000, respectively. Senbet also had notes payable
of $870,000. These notes carried an interest rate of 8 percent. Depreciation was $137,000. Senbet's tax
rate was 30 percent.
a. What was Senbet's net income?
b.What was Senbet's operating cash flow?
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