18. Net Income and OCF During the year, Belyk Paving Co. had sales of $2,275,000. Cost of goods sold, administrative and
Posted: Sun Jul 03, 2022 1:17 pm
18. Net Income and OCF During the year, Belyk Paving Co. hadsales of $2,275,000. Cost of goods sold, administrative and sellingexpenses, and depreciation expense were $1,285,000, $535,000, and$420,000, respectively. In addition, the company had an interestexpense of $245,000 and a tax rate of 21 percent. (Ignore any taxloss carryforward provision and assume interest expense is fullydeductible.)
a. What is the company’s net income?
b. What is its operating cash flow?
c. Explain your results in parts (a) and (b).
a. What is the company’s net income?
b. What is its operating cash flow?
c. Explain your results in parts (a) and (b).