the cash rate is 92.09%
Explanation:
The computation of the cash tax rate is shown below:
= Pre tax income + increased net reserve warranties - book depreciation - dividend
= $1,028,000 + $51,400 - $107,000 - $25,700
= $946,700
Now the cash rate is
= $946,700 ÷ $1,028,000 × 100
= 92.09%
Hence, the cash rate is 92.09%