1. A firm enjoys net sales of $3,500,000. Cost of goods sold is $2,000,000, depreciation expense is $100,000, and other management and administrative expenses at $350,000. It records interest expense at $200,000 and is taxed at the marginal tax rate of 40%
The Pretax Income (EBT)?
a. 1,500,000
b. 1,050,000
c. 850,000
d. 510,000
e. none of the above
2. Its net income available to stockholders is
a. 510,000
b. 350,000
c. 210,000
d. 75,000
e. none of the above