A firm's income statement included the following data. The firm's average tax rate was 2 Cost of goods sold Income taxes paid Administrative expenses $ 8,000 $ 2,000 $ 3,000 $ 1,000 $ 1,000 Interest expense Depreciation a. What was the firm's net income?

A firm's income statement included the following data. The firm's average tax rate was 2 Cost of goods sold Income taxes paid Administrative expenses $ 8,000 $ 2,000 $ 3,000 $ 1,000 $ 1,000 Interest expense Depreciation a. What was the firm's net income?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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Question

100%

A firm's income statement included the following data. The firm's average tax rate was 20%.
Cost of goods sold
Income taxes paid
Administrative expenses
$ 8,000
$ 2,000
$ 3,000
$ 1,000
$ 1,000
Interest expense
Depreciation
a. What was the firm's net income?
Net income
b. What must have been the firm's revenues?
Revenues
c. What was EBIT?
EBIT

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