Question: Brown Office Supplies recently reported $ 2 1 , 5 0 0 of sales, $ 7 , 5 0 0 of operating costs other than

Brown Office Supplies recently reported $21,500 of sales, $7,500 of operating costs other than depreciation, and $2,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate (interest expense of $630), and its tax rate was 40%. Finally, the firm paid a cash dividend of $750.
a. How much was the firm's earnings before taxes (EBT)?
b. Find the Net Income.

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