HOMEWORK 1 ANSWER KEY (1)

HOMEWORK 1 ANSWER KEY (1) - ENG 111, Fall 2011 October 10,...

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ENG 111, Fall 2011 October 10, 2011 HOMEWORK 1 ANSWER KEY 1. 0-50,000 15% 50,001-75,000 25% 75,001-100,00 34% 100,001-335,000 39% 335,000-10,000,000 34% 10,000,001-15,000,000 35% 15,000,001-18,333,333 38% 18,333,334+ 35% Let the income level be denoted by x. If 0≤ x ≤50,000, then ATR = which is flat. If 50,001≤ x ≤75,000, then ATR = which is increasing in x . If 75,001≤ x ≤100,000, then ATR = which is increasing in x . Using the same approach, we can see that for the remaining income brackets we have (in order) : ATR increasing in x. ATR flat in x. ATR increasing in x. ATR increasing in x. ATR = .35 flat in x. 2. Above calculations show that for any income that is greater than 18,333,333 the average tax rate is flat, hence the statement is correct.
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3. What is the change in the net working capital from 2007 to 2008? A. $1,235 B. $1,035 C. $1,335 D. $3,405 E. $4,740 Change in net working capital = ($7,310 - $2,570) - ($6,225 - $2,820) = $1,335
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4. What is the amount of the non-cash expenses for 2008?
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HOMEWORK 1 ANSWER KEY (1) - ENG 111, Fall 2011 October 10,...

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