A firm's income statement includes the following data. The firm's average tax rate was 20%. No depreciation is included in cost of goods sold or administrative expenses. Assume that depreciation equals CCA. Cost of goods sold Income taxes Administrative expenses Interest expense Depreciation a. What was the firm's profit before tax and net income? Profit before tax $ Net income b. What must have been the firm's revenues? Revenues c. What was EBIT? EBIT $8,000 2,000 3,000 1,000 1,000 $ $

A firm's income statement includes the following data. The firm's average tax rate was 20%. No depreciation is included in cost of goods sold or administrative expenses. Assume that depreciation equals CCA. a. What was the firm's profit before tax and net income? Profit before tax 5 Net income s b. What must have been the firm's revenues