U.S. CORPORATION 2009 Income Statement ($ in millions)

Net sales $1,509 Cost of goods sold 750 Depreciation 65 Earnings before interest and taxes $ 694 Interest paid 70 Taxable income $ 624 Taxes (34%) 212 Net income $ 412
Dividends $103
Addition to retained earnings 309

1. What is the change in net working capital from 2008 to 2009? 8. What is the operating cash flow for 2009?
   TABLE 2.2
   Income Statement
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2. What is net capital spending for 2009? 10. What is the cash flow from assets for 2009?
3. Given tax rates as shown, what is the average tax rate for a firm with taxable income of 3.25 Million
   Taxable Income Tax rate $ 0 - 50,000 15% 50,001- 75,000 25 75,000- 100,000 100,001- 335,000 335,001-10,000,000 10,000,001- 15,000,000
   'he -e tc sea!-ch 0
   34 39 34 35

Tax liability: