Problem $6-15($Algo$)$ Alternative financing plans $[$LO$6-5]$

Lear Incorporated has $$1,000,000$ in current assets, $$450,000$ of which are considered permanent current assets. In addition, the firm has $$800,000$ invested in fixed assets.

$0.$ Lear wishes to finance all fixed assets and half of its permanent current assets with long$-$term financing costing $9$ percent. The balance will be financed with short$-$term financing, which currently costs $7$ percent. Lear's earnings before interest and taxes are $$400,000.$ Determine Lear's earnings after taxes under this financing plan. The tax rate is $30$ percent.

$\backslash$table$[[$Earnings after taxes,$$,177,450$