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10-11 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

10-11 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%

10 The Pretax Income (EBT)?

a. 1,500,000

b 1,050,000

c 850,000

d 510,000

e none of the above

11 Its net income available to stockholders is

a. 510,000

b 350,000

c 210,000

d 75,000

e none of the above

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