Option c. A current liability is a correct answer. The amount of federal income taxes withheld from an employee's gross pay is recorded as a current liability
Under employment law, employers operate as intermediaries between employees and state and federal agencies. It is the obligation of employers to track and pay taxes, social security, and other payments from employee pay to government agencies.
The company must remit the amount withheld each quarter which means the amounts are owed in the current period. When taxes are paid, the FIT Payable account is debited to balance the transactions.
Option a) is incorrect as no asset is created by the withholding.
Option b) is incorrect as the taxes are not an expense paid by the company.
Option d) is incorrect as the payable operates as a normal liability account.
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Answer:
Net cash flow from investing activities is $47.2 million -$58.6 million =-11.4 million.
Explanation:
Draft Cashflow Statement.
Operating Activities; $0.0 million
Investing Activties;
Cash Inflows;
Sales of ; investment $32.0 million,plus sales of Land $15.2 million =$47.2 million.
Cash outflows; Purchase of ; treasury stock -$21.2, plus equipment -$25.2 million, plus patent -$12.2 million =-$58.6 million
Net cash flow from investing activities is $47.2 million less $58.6 million=-11.4 million.
Financing Activities;
Issues of common stock $40.4
Note that sales of own common stock is a financing activity
Hi there!
Usually, this is the case. However, just like when hoverboards first came out, there was a shortage of hoverboards and production activities had to ramp up production. However, after a few months, production activities were at a high level, but demand petered out.
-AwesomeRepublic :)
Answer:
Inventory turnover in days = 43.59 days
Inventory turnover (No of times)= 8.37 times
Explanation:
<em>Inventory turnover days is the average length of time it takes a business to sell its inventory before replacement.</em>
Inventory turnover in days
= Average inventory /Cost of goods sold × 365 days
<em>Average inventory = (Opening Inventory + closing inventory)/2</em>
<em>Average inventory </em>
= (21,000 + 22,000)/2
= 21,500
<em>Inventory turnover in days</em>
(21,500/180,600) × 365 days
=43.597 days
Inventory turnover (No of times )
= Cost of goods sold/Average inventory
= 180,600/21,500
= 8.37 times
