Question

During the year, Belyk Paving Co. had sales of $2,392,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,433,000, $435,800, and $490,800, respectively. In addition, the company had an interest expense of $215,800 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) 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.) Net income:? $ b. What is it's operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Operating cash flow?    $

Answer 1

	Answer =1
	CALCULATION OF THE NET INCOME
	Particulars	Amount	Amount
	Sales		$   23,92,000
	Less
	Cost of Goods Sold	$         14,33,000
	Administrative Expenses	$           4,35,800
	Depreciation Expenses	$           4,90,800
	Total Expenses		$   23,59,600
	Operating Income		$         32,400
	Less: Interest Expensnes		$      2,15,800
	Net Income Before Tax		$    -1,83,400
	Less: Tax @ 35%		$                   -
	Net Income after Tax		$    -1,83,400
	Answer = Net Income		$    -1,83,400
	Answer =2
	CALCULATION OF THE OPERATING CASH FLOW
	Net Income	$          -1,83,400
	Add: Depreciation	$           4,90,800
	Operating Cash Flow	$           3,07,400