What would be the Total Effective Tax Rate(TETR) if the federal and state tax ra
ID: 1171545 • Letter: W
Question
What would be the Total Effective Tax Rate(TETR) if the federal and state tax rates are 28%, 6%, respectively?
a. 33.33%
b. 34%
c. 32.32%
d. 35%
Last year, Monroe Products had $25,000 net cash provided by its operating activities. Its investing activities used $30,000, and its financing activities provided $10,000. Its cash balance at the beginning of the year was $15,000. By how much did Monroe's cash balance increase?
a. $10,000
b. $0
c. $65,000
d. $5,000
a. 33.33%
b. 34%
c. 32.32%
d. 35%
Last year, Monroe Products had $25,000 net cash provided by its operating activities. Its investing activities used $30,000, and its financing activities provided $10,000. Its cash balance at the beginning of the year was $15,000. By how much did Monroe's cash balance increase?
a. $10,000
b. $0
c. $65,000
d. $5,000
Explanation / Answer
Answer:
(1).
Option C is the answer.
Effective state tax bracket = (100-28)*6%=4.32
Combined tax bracket = 4.32+28 =32.32%
(2).
Cash from operating activities = $25,000
(+) Cash from investing activities = $30,000
(+) Cash from financing activities = $10,000
Cash balance increase = $65,000
Option C is the answer.
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