Problem:
During the year, the Senbet Discount Tire Company had gross sales of $1.06 million. The firm's cost of goods and selling expenses were $525,000 and $215,000, respectfully. Senbet also had notes payable of $800,000. These notes carried an interest rate of 7 percent. Depreciation was $130,000. Senbet's tax rate was 35 %
Required:
Question 1: What was Senbet's net income?
Question 2: What was Senbet's operating cash flow?
Note: Explain all calculation and formulas.