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A firm had sales of $550,000 in 2009. The cost of goods sold was $350,000, general and administrative expenses were $50,000, interest expenses were $20,000,

A firm had sales of $550,000 in 2009. The cost of goods sold was $350,000, general and administrative expenses were $50,000, interest expenses were $20,000, and depreciation was $58,000. Please, use following table to calculate taxes

Taxable Income ($)

Tax Rate (%)

0-50,000

15

50,001-75,000

25

75,001-100,000

34

Over 100,000

35

  1. What is earning before interest and taxes?

  2. What are the marginal and average tax rates for the firm?

  3. What is net income?

  4. What is cash flow from operation?

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