What is the solution for this question 3. Orange Company recently reported $10,500 of sales, $4,000 ofoperating costs other than depreciation, and $2,500 of depreciation. Ithad $4,000 of bonds outstanding that carry a 7%interest rate, and its taxrate was 35%. How much was the firm's earnings before taxes and interest(EBIT)? *$ 4,000$ 3,720$ 2,418$ 7,418None of the above 1. Gert. Co recently reported $10,750 of sales, $5,500 of operating costsother than depreciation, and $1,250 of depreciation. The company had$3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-stateincome tax rate was 35%. During the year, the firm had expenditures onfixed assets and net working capital that totaled $1,550. Theseexpenditures were necessary for it to sustain operations and generatefuture sales and cash flows. What was its free cash flow? *$1,873$1,972$2,076$2,300O None of the above2. ABC company sells an old piece of equipment for $5,000 cash. At thesame moment, it buys a new truck for $25,000. It paid also $2000 asdividends to its shareholders. The cash flow from investing activities forthis company is: *S-20,000$-22,000$ 20,000$-30,000

3. Orange Company recently reported $10,500 of sales, $4,000 of operating costs other than depreciation, and $2,500 of depreciation. It had $4,000 of bonds outstanding that carry a 7%interest rate, and its tax rate was 35%. How much was the firm's earnings before taxes and interes (EBIT)? $ 4,000 $ 3,720 O $2,418 $ 7,418 None of the above