During the year, Belyk Paving Co. had sales of $2,350,000. Cost of godds sold, administrative and selling expenses, and depreciation expense were $1,295,000, $530,000, and $420,000 respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 35 percent. ( Ignore any tax loss carryback or carryforward provisions.)
a) what is the company’s net income?
b) what is its operating cash flow?
c) explain your results in parts (a) and (b)