Problem:
Brown Office Supplies recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%.
Question: How much was the firm's earnings before taxes (EBT)? Provide step by step solution and computations.