6. Which one of the following accounts is the most liquid? A. inventory B. building C. accounts receivable D. equipment E. land 7. Which one of the following statements related to taxes is correct? A. The marginal tax rate must be equal to or lower than the average tax rate for a firm. B. The tax for a firm is computed by multiplying the firm's current marginal tax rate times the taxable income. C. Additional income is taxed at a firm's average tax rate. D. Given the corporate tax structure in 2012, the highest marginal tax rate is equal to the highest average tax rate. E. The marginal tax rate for a firm can be either higher than or the same as the average tax rate. 8. An increase in the depreciation expense will do which of the following? I. increase net income II. decrease net income III. decrease EBIT IV. increase EBIT A. I only B. Il only C. I and III only D. II and III only E. II and IV only 9. The tax rates are as shown. Nevada Mining currently has taxable income of $97,800. How much additional tax will the firm owe if taxable income increases by $21,000? Taxable income $ 0 - 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 335,000 Tax Rate 15% 25% 34% 39% A. $8,080 B. $8,130 C. $8,155 D. $8,170 E. $8,190 10. Cost of goods sold Interest Dividends Depreciation Change in retained earnings Tax rate 2011 $4,878 238 420 789 631 34% What is the operating cash flow for 2011? A. $2,078.00 B. $2,122.42 C. $2,462.58 D. $2,662.00 E. $2,741.42