Sapphire Technologies Inc. recently reported $230,000 of sales, $120,400 of operating costs other than depreciation, and $15,600 of depreciation. The company had $25,000 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 30%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes. a. $35,167.33 b. $64,618.75 c. $38,966.57 d. $41,017.44 e. $43,068.31

Sapphire Technologies Inc. recently reported $230,000 of sales, $120,400 of operating costs other than depreciation, and $15,600 of depreciation. The company had $25,000 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 30%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes. a. $35,167.33 b. $64,618.75 c. $38,966.57 d. $41,017.44 e. $43,068.31

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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