Computing revenues and ebit of firm


A company's income statement comprises the data given below. The company's average tax rate was 20%.

Cost of goods sold                 $ 8,000
Income taxes paid                    2,000
Administrative expenses           1,000
Depreciation                            1,000

1) Compute the firm's net income?

2) What must have been the firm's revenues?

3) Determine EBIT.

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Accounting Basics: Computing revenues and ebit of firm
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