Answer:
Payroll withholding spreads out the cost of taxes throughout the year, so employees don't have to pay the entire amount they owe all at once on April 15. This helps make sure that people pay their taxes.
Not being able to pay it off is a big one.
Answer:
Variable costs vary with the volume of production and can be changed in the short run.
Fixed costs do not vary with the volume of production and cannot be changed in the short run. Only in the long run can they be changed.
Variable costs:
- Advertising expenditures
- Fuel
- Shipping charges
- Payments for raw materials
- Wage payments
- Sales taxes
Fixed costs:
- Interest on company issued bonds
- Real estate taxes
- Executive salaries
- Insurance premiums
- Rental payments on leased office machinery.
Answer:
Explanation:
Raw data (in $):
August September
Sale 235,000 1.3 × 235,000 = 305,500
- Cash collected 40% 60% of 235,000
40% of 305,500
Purchase 185,000 205,000
- Cash paid 30% 70% of 185,000
30% of 205,000
Beginning cash balance on September 1: $8,600
<u>Calculations: </u>
The change of the cash balance on September will be the cash collected during the month less the cash paid during the month:
- Cash collected: 60% × $235,000 = $141,000
40% × $305,000 = $122,200
- Cash paid: 70% × $185,000 = $129,500
30% × $205,000 = $61,500
<u>Ending cash balance of September 30:</u>
- Beginning cash balance + cash collected - cahs paid
- $8,600 + $141,000 + $122,200 - $129,500 - $61,500 = $80,800