Question

Mm inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of

depreciation. the company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest
rate, and its federal-plus-state income tax rate was 25%. how much was the firm's net income after taxes?

Answer 1

9456.25?

Explanation:

25% in taxes would be 3750+the depreciation and operating costs equals 12450. income was 15000, and they had an outstanding bond worth 6500 with 6.25% interest added onto it, so you get like 21906.25. then i just subtracted it. not sure if it is right, i took accounting 101 like a year or 2 ago, lol