The following are selected Financial information on Firm A and Firm B. You are asked to complete the table by methodically calculating the missing in formation.

You will assume that Cost of Goods Sold (COGS) is 65% of sales and that the company uses a marginal tax rate of 35%.

Cost of depreciation is assumed to be zero (0)

FIRM A FIRM B

Revenue $ 3,000 $ 3,000

COGS - -

Gross Profit 1,050 1,050

Operating Expenses (300) (300)

EBIT 750 750

Interest Expense - -

Earnings before Tax (EBT) - -

Income Tax @ 35% - -

Net Income $ 488 $ 472

- -