Leat, Inc has $850,000 in current assets. $370,000 of which are considered permanent current assets. In addition the firm has $620,000 invested in capital assets Lear wishes to finance all capital assets and half of its permanent current assets with long term financing costing 10 percent Short torm financing currently costs 5 percent Lear's earnings before interest and taxes are $220,000 Determine Lears earnings after taxes under this financing plan. The tax rate is 30 percent Earnings after taxes b. As an alternative. Lear might wish to finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing. The same interest rates apply as in parta, Earnings before interest and toxes will be $220,000 What will be Lear's earnings after taxes? The tax rate is 30 percent Earnings after taxes $