Given the following list of account balance, create an income statement and balance sheet. The firm's average tax rate was $20\%.$ Note, the list of accounts is not complete and some

accounts will have to be calculated.

a$.$ what is the firm's net income?

b$.$ what must have been the firm's revenues?

c$.$ What was EBIT?

Cash $10,000$

Inventory $200,000$

Fixed Assets $100,000$

Accounts receivable $22,000$

Accounts payable $17,000$

Long$-$term debt $170,000$

Cost of Goods Sold $8,000$

Income taxes $2,000$

Administrative expenses $3,000$

Interest expense $1,000$

Depreciation $1,000$

a$.$ Create an income statement and Include Gross profit, EBIT, Taxable income, Taxes and Net income.

b$.$ Create a balance sheet