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Author Question: Companies generate income from their regular operations and from other sources such as interest ... (Read 5 times)

april 19

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on: Aug 7, 2023
Companies generate income from their “regular” operations and from other sources such as interest earned on the securities they hold, which is called nonoperating income. Lindley Textiles recently reported $17,500 of sales, $8,450 of operating costs other than depreciation, and $2,000 of depreciation. The company had no amortization charges and no nonoperating income. It had $9,000 of bonds outstanding that carry a 6.5% interest rate, and its combined federal and provincial income tax rate was 38%. How much was Lindley’s operating income, or EBIT?

◦

$6,531


◦

$7,050


◦

$8,062


◦

$8,946

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Marked as best answer by april 19 on Aug 7, 2023

BryanAultm

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Reply #1 on: Aug 7, 2023
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april 19

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Reply 2 on: Aug 7, 2023
Gracias!

samiel-sayed

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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