Question
1. Explain why the income statement is not a good representation of cash flow. 2. Given the tax rates as shown, what is the average
1. Explain why the income statement is not a good representation of cash flow.
2. Given the tax rates as shown, what is the average tax rate and marginal tax rate for a firm with taxable income of $218,700?
Taxable Income $0 - 50,000 50,001 -75,000 75,001 -100,000 100,001-335,000 Tax Rate (%) 15 25 34 39
Step by Step Solution
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A Net cash flows are different than Income statement Net cash flows are pure net cash of an entity T...
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
