1. Density Farms, Inc. had sales of $500,000, cost of goods sold of $180,000, selling and administrative expense of $68,000, and operating profit of $92,000. What was the value of depreciation expense?
$158,000
$160,000
$60,000
$169,000
2. Gerry Co. has a gross profit of $920,000 and $200,000 in depreciation expense. Selling and administrative expense is $121,000. Given that the tax rate is 42 percent, compute the cash flow for Gerry Co.
$120,958
$547,420
$549,920
$720,000