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Building an Income Statement During the year, the Senbet Discount Tire Company had gross sales of $870,000. The firm's cost of goods sold and selling expenses were $280,000 and $155,000, respectively. Senbet also had notes payable of $650,000. These notes carried an interest rate of 6 percent. Depreciation was $86,000. Senbet's tax rate was 35 percent.
a. What was Senbet's net income?
b. What was Senbet's operating cash flow?
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