Companies Generate Income from Their "Regular" Operations and from Other

question 60

Multiple Choice

Companies generate income from their "regular" operations and from other sources such as interest earned on the securities they hold,which is called non-operating income.Lindley Textiles recently reported $12,500 of sales,$7,250 of operating costs other than depreciation,and $1,000 of depreciation.The company had no amortization charges and no non-operating income.It had $8,000 of bonds outstanding that carry a 7.5% interest rate,and its combined federal and provincial income tax rate was 40%.How much was Lindley's operating income,or EBIT?

• A)$3,644
• B)$3,836
• C)$4,038
• D)$4,250

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Definitions:

Serotonin Potentiator

A substance or mechanism that enhances the activity or effect of serotonin, a neurotransmitter involved in mood regulation, appetite control, and sleep.

Anxiolytic

Referring to a drug or intervention that reduces anxiety by inhibiting anxiety-producing reactions in the brain.

Alcohol

A psychoactive substance with depressant effects, commonly consumed in beverages form and capable of altering mood, perception, and behavior.

Anxiolytics

Drugs that alleviate the symptoms of anxiety.