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?

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