A firm's income statement included the following data. The firm's average tax rate was 20%. $...

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A firms income statement included the following data. The firms average tax rate was 20%. $ 9,600 Cost of goods sold Income

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Answer 1

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Answer #1

A.

Tax rate =20%

Income taxes =3600

Taxable or beforetax Income = Income tax/tax rate

=3600/20%

=18000

Net Income = Beforetax Income - Income tax

=18000-3600

=$14400

So Net Income is 14400

B.

Beforetax Income = Revenue - Cost of goods sold - Administrative Expenses - ínterest - Depreciation

18000= R -9600-4600-2600-2600

R= 18000+9600+4600+2600+2600

R =37400

So Revenue is 37400

C

EBIT = before tax income + ínterest

=18000+2600

=$20600

So EBIT is 20600

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