2. Please answer parts A and B

a. Boisjoly Productions had taxable income of $19.3 million. Calculate Boisjoly's federal income taxes using the tax table shown in the popup window:

Now calculate Boisjoly's average and marginal tax rates.

The firm's tax liability for the year is $???. (Round to the nearest dollar.)

b. Kabutell, Inc. had net income of $700,000, cash flow from financing activities of $90,000, depreciation expenses of $50,000, and cash flow from operating activities of $500,000. Calculate the quality of earnings ratio. What does this ratio tell you?

Kabutell, Inc. reported the following in its annual reports for 20112013:

($ million)	2011	2012	2013
Cash Flow from Operations	$478	$402	$472
Capital Expenditures (CAPEX)	$459	$447	$457

Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results?

What is Kabutell's quality of earnings ratio?: ???% (Round to one decimal place.)

\begin{tabular}{l|l} Taxable Income & Marginal Tax Rate \\ $0$50,000 & 15% \\ \hline$50,001$75,000 & 25% \\ \hline$75,001$100,000 & 34% \\ \hline$100,001$335,000 & 39% \\ \hline$335,001$10,000,000 & 34% \\ \hline$10,000,001$15,000,000 & 35% \\ \hline$15,000,001$18,333,333 & 38% \\ \hline Over $18,333,333 & 35% \\ \hline \end{tabular}