Lindley textiles recently reported 12,500 of sales, 7250 of operating costs other than depreciation, and 1,000 of depreciation. The company had no amortization changes and no non-operating income. It has 8,000 in loans outstanding that carry a 7.5% interest rate and its federal plus state tax rate was 40%.
a. What is the company's EBIT:
b. What is the company's Net Income: