During the year, the Senbet Discount Tire Company had gross sales of $1.22 million. The company's cost of goods sold and selling expenses were $541,000 and $231,000, respectively. The company also had debt of $960,000, which carried an interest rate of 6 percent. Depreciation was $146,000. The tax rate was 40 percent.
The Net Income Is $146,640.00
What was the company’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
Sales | $1,220,000 |
Cost of goods sold | $541,000 |
Selling costs | $231,000 |
Depreciation | $146,000 |
EBIT | $302,000 |
Interest | $57,600 |
Taxable income | $244,400 |
Taxes (40%) | $97,760 |
Net income | $146,640 |
OCF = EBIT + Depreciation – Taxes
OCF = $302,000 + $146,000 – $97,760
OCF = $350,240
During the year, the Senbet Discount Tire Company had gross sales of $1.22 million. The company's...
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