1. Suppose the marginal tax brackets are as follows:

Income between $0 and $10,000 is taxed at 0%,

Income between $10,000 and $55,000 is taxed at 5%,

Income between $55,000 and $70,000 is taxed at 8%,

Income over $70,000 is taxed at 12%.

If your income is $90,000, how much do you owe in taxes, and what percent of your income do you pay in taxes?

2 You need to have $95,000 to purchase your dream car. You currently have $11,000. You can invest the money in an account that pays 4.25% interest each year. How long will it take you to have the money to purchase the car (assuming no other deposits are made to this account)?

2b.An industrious 15-year old earned $18,000 one year by cutting grass.Because she lives with her parents, she decided to save all of her earnings.If she invested all $18,000 in an account that earns 10.75% interest per year, how much will the account be worth in 50 years from now, when she is at the traditional retirement age (to be clear: she would be 65 years old, but that's 50 years from now)?

3 Your company keeps an inventory of paper (boxes of paper). The carrying cost is $0.15 per box, and the fixed order cost is $10 per order. Your firm sells 35,000 boxes per year. What is the economic order quantity?

4a. Your company prepares monthly (30-day) cash budgets, and has an average collection period of 15 days. Expected sales for next month is $1,200. The beginning balance of accounts receivables is $500. What are cash collections for next month?

4b. Purchases are 50% of next month's projected sales. The beginning accounts payable balance is $250, and the payables period is 10 days. Wages paid for next month will be $200, capital expenditures for next month will be $100, and the company pays $45 monthly in interest payments.

What are total cash disbursements for next month?

4c. What is the net cash flow for next month?

4d. What is the ending cash balance for next month?

5 Suppose the 2019 values for Test1 Ltd. were as follows:

Profit Margin = 0.12 (or 12%);

Total Asset Turnover = 0.66;

Equity Multiplier = 1.89.

What was the Return on Equity (ROE) for 2019?What accounts for the change (refer to question 5a, 5b, and 5c) in ROE between in 2019 (your answer for question #5) and 2021?