Arlene is single and has taxable income of $18,000. Her tax liability is currently $2,236. She has the opportunity to earn an additional $5,000 if she accepts and completes a special project at work. There are no additional expenses to offset the $5,000 income. Consequently, Arlene will have a tax liability of $2,986.
Required:
1. If she accepts the special project. Arlene has a marginal tax rate of .

The answer is 15%

Explanation:

Solution

Recall that:

Arlene has a income (taxable) = $18,000

Current tax liability = $2,236

She has an opportunity to have a additional of =$5000

Consequently Arlene has a tax liability of  =$2986

Now,

We find the marginal tax rate

Thus,

Marginal tax rate = Change in tax / change in taxable income

=(2986- 2236)/5000

= 750/5000

= 0.15 or 15%

Therefore, Arlene has a marginal tax rate of 15%

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.