Chapter 2 Financial Statements, Taxes, and Cash Flow 1. Hoobstank, Inc., has sales of $425,000, cost of $210,000, depreciation expense of $63,000, interest expense of $38,000, and a tax rate of 35 percent. What is the net in come for this firm? The Gonas Co. had $310,000 in 2014 taxable income. Using the rates from Corporate Tax Rates Table in the chapter, calculate the company's 2014 income taxes. 2. 3. In Problem 2, what is the average tax rate? What is the marginal tax rate? 4. Given the following information for Pierce Pizza Co., calculate the depreciation expense: sales $30,000; costs $19,000; addition to retained earnings dividends paid = $900, interest expense-$1,430, tax rate = 35 percent. $2,100