Frederickson Office Supplies recently reported $10,000 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's taxable income, or earnings before taxes (EBT)?

Select the correct answer.

a. $600

b. $1,500

c. $900

d. $1,200

e. $300

On 12/31/2020, Heaton Industries Inc. reported retained earnings of $400,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 2020. How much in dividends did Heaton pay during 2020?

Select the correct answer.

a. $327,500

b. $327,363

c. $327,432

d. $327,226

e. $327,295

EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?

Sales	$ 3,500.00
Costs	1,400.00
Depreciation	250.00
EBIT	$ 1,850.00
Interest expense	70.00
EBT	$ 1,780.00
Taxes (25%)	712.00
Net income	$ 1,068.00

a. $1,389.50

b. $1,391.50

c. $1,393.50

d. $1,385.50

e. $1,387.50