Posted: September 12th, 2015

Net Income and OCF. During the year, Belyk Paving Co. had sales of $2,600,000.

Net Income and OCF. During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,535,000, $465,000, and $520,000, 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 Belyk’s net income? b. What is its operating cash flow? c. Explain your results in (a) and (b).