Question: 1. Explain why the income statement is not a good representation of cash flow. 2. Given the tax rates as shown, what is the average

1. Explain why the income statement is not a good representation of cash flow.

2. Given the tax rates as shown, what is the average tax rate and marginal tax rate for a firm with taxable income of $218,700?

Taxable Income $0 - 50,000 50,001 -75,000 75,001 -100,000 100,001-335,000 Tax Rate

Taxable Income $0 - 50,000 50,001 -75,000 75,001 -100,000 100,001-335,000 Tax Rate (%) 15 25 34 39

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