Which of the following statement is incorrect?

1.Net capital spending = NFA(end) NFA(beg) + Depreciation.

2.Marginal tax rate = tax bill / taxable income.

3.Activities that bring in cash are sources and firms raise cash by selling assets, borrowing money, or selling securities.

4.EBIT = Sales Costs Depreciation.

5.Most of the answers are correct except one.