Answers
Answer:
The quarter has 3 months so all 15 weeks shall have following taxes:
Employee Wages Exempt under FUTA or SUTA
Employee 1
Wages = 15 week x 900 = 13.500
Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500
Employee 2
Wages = 15 week x 1200 = 18.000
Exempt under FUTA or SUTA = 18.000 - 7,000= 11000
From the above table.
The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,
Employee I is paid, 900 x 15 weeks
= 13,500
Employee 2 is paid, 1200 x 15 weeks
= I 8,000
For employee 1,
= 13,500 - 7,000
Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500
For employee 2,
=18,000 - 7000
Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee =11000
The taxable wages are obtained by deducting.
= (13,500 +18000) - (6,500 +11,000)
= 31500 - 17500
= 14000
The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,
0.057 x 14,000 = $798
FUTA.
0.008 x 14000
= $112
Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.
Final answer:
Jean Michaud will pay a state unemployment tax of $1,556.10 and a federal unemployment tax of $163.80 per quarter for his two employees.
Explanation:
The question pertains to calculating the unemployment taxes that Jean Michaud will have to pay for his two employees at a state rate of 5.7% and federal rate of 0.6%. Firstly, we calculate the total wages paid to both employees per quarter. One quarter comprises 13 weeks, therefore the total wages paid per quarter would be ($900+$1200) * 13 = $27,300.
Next, we calculate the unemployment taxes. The state unemployment tax would be $27,300 * 5.7% = $1,556.10 and the federal unemployment tax would be $27,300 * 0.6% = $163.80.
Therefore, the state and federal unemployment taxes Jean will pay at the end of quarters 1 and 2 are respectively $1,556.10 and $163.80. Note, these calculations assume that these are the only two employees and their wages are constant throughout these quarters.
Learn more about Unemployment Taxes here:
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Royal Enterprises has presented the following information for the past three months operations: Month Units Average Cost June 3,300 $ 11.80 July 5,700 $ 7.80 August 6,900 $ 7.00 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.) b. What would total costs be for a month with 5,300 units produced?
Answers
Answer:
The cash is increased by $115,000 during the month of October.
Explanation:
The computation of net effect of cash is shown below:
= Net income - increased in receivables - decrease in payable + depreciation expense
= $120,000 - $35,000 - $25,000 + $55,000
= $115,000
The increase in receivable should be deducted as the outflow of cash is there, which decrease the cash balance so we deduct it
The decrease in account payable reflect that the company has paid the amount which ultimately reduce the cash balance, hence it is deducted in the computation part
Depreciation expense is added in the cash balance because it is a non cash expense.
Thus, the amount is in positive number which reflects increase in cash
Hence, the cash is increased by $115,000 during the month of October.
Answers
Answer: Cost management, profitability, return on assets, competitive position and corporate social policy
Explanation:
Supply has the potential to contribute to cost management, profitability, return on assets, competitive position and corporate social policy.
Supply is defined as the amount of goods or services that a supplier is willing to offer for sale at a particular price and at a certain period. The amount of goods offered can determine the revenue generated and hence the profit made.
Answers
Answer:
a) 5.45%
b) 6.98%
Explanation:
We are given the following information in the question:
Mean, μ = 0.8%
Standard Deviation, σ = 2%
We are given that the distribution of profit is a bell shaped distribution that is a normal distribution.
Formula:
a) We have to find the value of x such that the probability is 0.99
P(X < x)
Calculation the value from standard normal z table, we have,
Thus, 5.45% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.
b) We have to find the value of x such that the probability is 0.999
P(X < x)
Calculation the value from standard normal z table, we have,
Thus, 6.98% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.
Answers
Answer:
A 15-year mortgage monthly payments is: $1,496.5
A 30-year mortgage monthly payments is: $1,060.1
=> The difference of monthly payment between the two options is: $436.4 ( $1,496.5 - $1,060.1) where the monthly payment of the option of 15-year mortgage is higher.
Explanation:
The borrowed amount in both options is : $250,000 * 80% = $200,000;
* A 15-year mortgage monthly payments is:
We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.0425 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.3475%;
Amount of payment periods = 15 * 12 = 180
=> Monthly payment = (200,000 * 0.3475%) / [ 1 - 1.003475^(-180) ] = $1,496.5
* A 30-year mortgage monthly payments is:
We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.05 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.4074%;
Amount of payment periods = 30 * 12 = 360
=> Monthly payment = (200,000 * 0.4074%) / [ 1 - 1.004074^(-360) ] = $1,060.1
Answers
Answer:
The correct answer is letter "A": PCN.
Explanation:
In international staffing, a Parent Country National (PCN) is an employee that is hired to work in the same country from where the employee is resident and where the company has its headquarters. Usually, firms hire PCNs when foreign cultures are distant.
(b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answers
Answer:
a. The first year's net earnings under the cash basis of accounting is $7,600 and the first year's net earnings under the basis of accounting is $12,200
b. Accrual basis of accounting provides more useful information.
Explanation:
a. In order to calculate the first year's net earnings under the cash basis of accounting we would have to use the following formula:
Cash basis net earnings = Service revenue (Cash) – Cash expenses – Prepaid expenses
Cash basis net earnings =$22,000 – $12,000 – $2,400
Cash basis net earnings =$7,600
In order to calculate the first year's net earnings under the the basis of accounting we would have to use the following formula:
Accrual basis net earnings = Service revenue – Operating expenses incurred
Accrual basis net earnings= $28,000 – $15,800
Accrual basis net earnings=$12,200
b. Accrual basis of accounting provides more useful information, because in this system revenues are recorded what actually earned and expenses are recorded what actually incurred for earning such revenues. Therefore, it gives better profit picture