In 2020, Spanish Fort Corporation had net sales of $500,000 and cost of goods sold of $300,000. Operating expenses were $93,000, and interest expense was $7,500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $7,000 in 2020, and its average common stockholders' equity during the year was $500,000.

SPANISH FORT CORPORATION Income Statement December 31, 2020 Interest Expense $