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During the year, the Senbet Discount Tire Company had gross sales of $1.2 million. The firm's cost of goods sold and selling expenses were $450,000 and $225,000, respectively. Senbet also had notes payable of $900,000. These notes carried an interest rate of 9%. Depreciation was $110,000. Senbet's tax rate was 35%.
a. What was Senbet's net income?
b. What was Senbet's operating cash flow?
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