Determine the earnings before taxes (EBT) of Waterloo Inc. based on the following information: sales: $35,000 operating costs other than depreciation: $10,250 depreciation: $4,250. The company has no amortization or depreciation charges and no nonoperating income. It has $10,000 of bonds outstanding that carry a 4% interest rate, and its combined federal and provincial income tax rate is 20%.

Answers

$20,500.00 $19,480.00 $21,500.00 $20,100.00