1. A firm had sales of $20 million, cost of goods sold was $12 million, operating expenses were $4 million, and interest expenses were $150,000. Determine the firm's tax liability. What is the firm's average tax rate? (Tax table is below) Income $0 - $50,000 $50,000 - $75,000 $75,000 - $10,000,000 Over $10,000,000 Tax rate 15% 25% 34% 35% 2. Prepare a balance sheet and income statement from the following information: Depreciation $66,000 Cash $225,000 Long term debt $394,900 Sales $573,000 Account payable $102,000 Gen and Admin Expense $79,000 Building and Equipment $632,000 Notes payable $75,000 Accounts receivable $167,500 Interest $4,750 Common Stock $289,000 COGS $297,000 Inventory $99,300 Taxes $50,500 Retained earnings $262,900