Solution-Differences between accounting profit and cash flow

Differences between accounting profit and cash flow

Reference no: EM13535191

Financial Cash Flow

1. What are the differences between accounting profit and cash flow?

2. During 1998, the Senbet Discount Tire Company had gross sales of $1 million. The firm's cost of goods sold and selling expenses were $300,000 and $200,000, respectively. These figures do not include depreciation. Senbet also had notes payable of $1 million. These notes carried an interest rate of 10 percent. Depreciation was $100,000. Senbet's tax rate in 1998 was 35 percent.

a. What was Senbet's net operating income?

b. What were the firm's earnings before taxes?

c. What was Senbet's net income?

d. What was Senbet's operating cash flow?

Reference no: EM13535191

Questions Cloud

Prepare an income statement for the current year : Prepare an income statement for the current year ended April 30, 2008 - The assets and liabilities of Chickadee Travel Service at April 30, 2008, the end of the current year

Calculate the maximum height reached by the cannon ball : A bronze cannon ball with a mass of 4.5 kg is fired vertically from a small cannon and reaches a height of 13.0 m. calculate the maximum height reached by the cannon ball

Determine the force the pole exerts on the ball : A tetherball leans against the smooth, frictionless post to which it is attached. What is the force the pole exerts on the ball

Explain an enthalpies of formation table : Which SUBSTANCE in the following would NOT NEED to be included in an enthalpies of formation table

Differences between accounting profit and cash flow : What are the differences between accounting profit and cash flow and what was Senbets net operating income?

Explain how many electrons are in the above redox reaction : Identify the substance that is oxidized and the substance that is reduced in the following reaction: 2NaCl(l) --> 2Na(s) + Cl2(g). How many electrons are involved in the above redox reaction

How far has the object moved during given interval : A 5kg object is initally at rest. The object is acted on by a 9N force toward the east for 3 seconds. How far has the object moved during this 7 second interval

Entries for notes receivable - journalize the transactions : Entries for notes receivable, including year-end entries - Journalize the transactions.

How much of the dividends goes to preferred : How much of the dividends goes to preferred and how much goes to common and how much of the dividend goes to preferred? How much goes to common?

User Account

All Pages

Differences between accounting profit and cash flow

Reference no: EM13535191

Reference no: EM13535191

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT