The following information is drawn from the income statements of East Company and West Company East $ 60,000 (12,000) 48,000 (14,400) West $ 40,000 (10,000) 40,000 Income before interest and taxes (EBIT) Interest expense Income before taxes Income tax expense for East $48,000 x .30 Income tax expense for West $40,000 x .30 Net Income 12,000 $ 28,000 33,600 All other things being equal, Multiple Choice East Company is more likely to be able to make its legally required interest payments than West Company. o East Company is less likely to be able to make its legally required interest payments than West Company. East Company and West Company are equally able to make their legally required interest payments. O The answer cannot be determined using the information provided