s out of 10 Flag question Acme Inc. recently reported $15,000 of sales, $7,500 o

Question

s out of 10 Flag question Acme Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? Select one: a. $3,284.55 b. $3,457.42 c. $3,639.39 d. $3,830.94 e. $4,022.48 O Question 13 Not yet answered Points out of 1 0 7:45 PM 6/13/2018 F12 PrtScr InsertDelete F8 F9 F10 F11 Backspace 8 9

Explanation / Answer

Sales 15000 Less:operating costs (7500) Less:depreciation (1200) Earnings before interest and taxes $6300 Less:interest(6500*6.25%) ($406.25) Earnings before taxes $5893.75 Less:taxes@35%(0.35*5893.75) ($2062.8125) Net income $3830.94(Approx).

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