1. Based on the tax table below, what is the average tax rate for a sole proprietor with taxable income of $155,000? Ignore any standard or itemized deductions.

Taxable Income	Tax Rate
$0 - 9,875	10%
$9,875 - 40,125	12
$40,125 - 85,525	22
$85,525 - 163,300	24

a) 10.76%

b) 20.18%

c) 24.00%

d) 21.00%

2 At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509. At the end of the year, the current assets were $122,418 and the current liabilities were $103,718. What is the change in net working capital?

a) -$11,503

b) $19,387

c) $15,497

d) $21,903

3 At the beginning of the year, Smidovec Plumbing had current liabilities of $15,932 and total debt of $68,847. By year end, current liabilities were $13,870 and total debt was $72,415. What is the amount of net new borrowing for the year?

a) $5,530

b)-$2,480

c)$3,568

d) $4,677

(show working out)