(Answered) Problembrown office supplies recently reported 16000 of

Management Studies

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Brown Office Supplies recently reported $16,000 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)?

a. $6,551

b. $5,370

c. $6,122

d. $4,994

e. $6,444.

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