Floramaria is an elderly woman who lives with her niece galaxy. floramaria is dependent on galaxy for support. galaxy advises fl
1 answer:
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Answer:
Net earnings before taxes = $9,300
Explanation:
Provided information, we have
Sales for the period = $20,000
Less: Operating Cost = $8,250
Less: Depreciation = $1,750
Operating income = $10,000
Less: Interest = $10,000 7% = $700
Thus, net earnings before taxes = $9,300
Note: All the expenses including depreciation, and interest are charged before taxes.
Therefore, depreciation and interest has been deducted before charging taxes.