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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

    • 8 years ago
    • 3
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