Question: During the 1998, the Senbet Discount Tire Company had gross sales of 1 million dollar. The firm’s cost of goods sold and selling expenses were $300,000 & $200,000, respectively. These figures do not include depreciation. Senbet also had notes payable of $1 million. These notes carried an interest rate of 10 dollar. Depreciation was 100,000 dollar. Senbet’s tax rate in 1998 was 35%.
[A] Calculate Senbet’s net income?
[B] Calculate Senbet’s net operating income?
[C] What were the firm’s earnings before taxes?
[D] Calculate Senbet’s operating cash flow?