The Dakota Corporation had a 2021 taxable income of $14,000,000 from operations after all operating costs but before (1) interest charges of $3,200,000, (2) dividends received of $260,000, (3) dividends paid of $1,900,000, and (4) income taxes (the firm's tax rate is 21 percent). a. Calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability b. What are Dakota's average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.) Average tax rate Marginal tax rate % % Use the balance sheet and income statement below: 2021 2020 $ 14 Assets Current assets Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Other long-term assets Total Total assets CLANCY'S DOG BISCUIT CORPORATION Balance Sheet'as of December 31, 2021 and 2020 (in millions of dollars) 2021 2020 Liabilities and Equity Current liabilities: $ 10 5 10 Acerued wages and taxes 40 32 Accounts payable 42 37 Notes payable $ 92 $ 79 Total Long-term debt $112 $ 94 Stockholders' equity! 35 27 Preferred stock (2 million shares) $ 77 $ 67 Common stock and paid-in-surplus (5 million shares) 30 30 Retained earnings $107 $ 97 Total $199 $176 Total liabilities and equity 29 29 $ 72 $ 40 $ 9 27 25 $ 61 $ 45 :|| | | $ 2 11 74 $ 82 $199 $ 2 11 57 $ 70 $176 CLANCY'S DOG BISCUIT CORPORATION Income Statement for Years Ending December 31, 2021 and 2020 (in millions of dollars) 2021 2020 Net sales $ 112 $ 116 Less: Cost of goods sold 57 53 Gross profits $ 55 $ 63 Less: Other operating expenses 10 9 Earnings before interest, taxes depreciation, and amortization (EBITDA) $ 45 $ 54 Less: Accumulated depreciation B 8 Earnings before interest and taxes (EBIT) $ 37 s 54 Less! Interest 8 B Earnings before taxes (EBT) $ 29 $ 38 6 8 LOSS Taxes Net income $ 23 $ 30 Less: Preferred stock dividends 5 1 S 1 Net income available to common stockholders $ 22 $ 29 5 5 Less Common stock dividends Addition to retained earnings $ 17 $ 24 $ a $ $ $ 8 37 8 29 6 23 8 54 8 38 8 30 $ Less: Accumulated depreciation Earnings before interest and taxes (EBIT) Les Interest Earnings before taxes (EBT) Les31 Taxes Net income Less: Preferred stock dividendo Net income available to common stockholders Less: Common stock dividends Addition to retained earnings Per (common) share data Earnings per share (BPS) Dividends per share (DPS) Book value por share (BVPS) Market value (price) per share (UPS) $ $ $ 5 1 22 5 17 1 29 5 24 $ $ $4.40 3 1.00 $17.00 $17.65 $ 3.80 $ 1.00 $13.60 $17.00 Prepare a statement of cash flows for Clancy's Dog Biscuit Corporation (Enter your answers in millions of dollars. Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows for Year Ending December 31, 2021 (in millions of dollars) Cash flows from operating activities Additions (sources of cash) Subtractions (uses of cash): Net cash flow from operating activities Cash flows from Investing activities Subtractions: Slot Additions (sources of cash) Subtractions (uses of cash): Net cash flow from operating activities Cash flows from investing activities Subtractions: Net cash flow from investing activities Cash flows from financing activities Additions: Subtractions: Net cash flow from financing activities Net change in cash and marketable securities