Question

During the year, Belyk Paving Co. had sales of $2,395,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,325,000, $615,000, and $444,000, respectively. In addition, the company had an interest expense of $269,000 and a tax rate of 23 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) a. What is the company's net income? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is its operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Answer is complete but not entirely correct. Net income Operating cash flow 198,660 455,000 b. $

Answer 1

Sales	$2,395,000
Less: Expenses:
Cost of goods sold	-1,325,000
Administrative and selling expense	-615,000
Depreciation expense	-444,000
Income before interest and tax	11,000
Less: Interest expense	-269,000
Income before tax	-258,000
Less; Income tax@23%	0
Net income or Loss	-$258,000