Ask Question
21 April, 06:23

During the year, Belyk Paving Co. had sales of $2,470,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,346,000, $655,000, and $459,000, respectively. In addition, the company had an interest expense of $284,000 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?

+4
Answers (1)
  1. 21 April, 08:24
    0
    Instructions are listed below

    Explanation:

    Giving the following information:

    A)

    Sales of $2,470,000.

    Cost of goods sold = $1,346,000

    Gross profit = 1,124,000

    Administrative and selling expenses = $655,000

    Depreciation expense = $459,000

    Interest expense = $284,000

    Earnings before taxes = - 274,000

    Tax savings = 63020

    Net operating income = - 210980

    B)

    Revenue = 2,470,000

    COGS = 1,346,000 (-)

    Administrative and selling expenses = $655,000 (-)

    Depreciation expense = $459,000 (-)

    Interest expense = $284,000 (-)

    Earnings before taxes = - 274,000

    Tax savings = 63020

    Earnings after tax = - 210980

    Depreciation expense = $459,000

    Interest expense = $284,000

    Operating cash flow = $532,020
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “During the year, Belyk Paving Co. had sales of $2,470,000. Cost of goods sold, administrative and selling expenses, and depreciation ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers