Calculation of operating cash flows

Reference no: EM1316231

During the 1998, the Senbet Discount Tire Company had gross sales of $1 million. The firm's cost of goods sold and selling expenses were $300,000 and $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%. Depreciation was $100,000. Senbet's tax rate in 1998 was 35%.

a. What was Senbet's net operating income?

b. What were the firm's earnings before taxes?

c. What was Senbet's net income?

d. What was Senbet's operating cash flow?

Reference no: EM1316231

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