Big Game, Inc., is a manufacturer of huntingsupplies. The following is a summary of thecompany's annual payroll-related costs.$ 6,910,000Wages and salaries expense (of which $2,200,000 waswithheld from employees' pay and forwarded directlyto tax authorities)Payroll taxes580,000Workers' compensation premiums250,000Group health insurance premiums725,000Contributions to employees' pension plan450,000a. Compute Big Game's total payroll-relatedcosts for the year.b. Compute the net amount of cash actuallypaid to employees (their take-home pay).c-1. Express total payroll-related costs as apercentage of total wages and salaries expense.c-2. Express total payroll-related costs as apercentage of employees' take-home pay.

In this question, we have to compute the payroll-related costs.

Answered: 910,00 80,000

Business

Accounting

910,00 80,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Given PV= $21,000, at 6%, Pmt at $265 What is "N" = 1) 101.16 O2) 152.01 3) 125.24

A: We need to use NPER function in excel to calculate value of N(number of periods). The formula is…

Q: w come 80*2*35? It should be 25. right?

A: Future value of annuity includes the amount that is being deposited over the period of time and…

Q: What is the real answer? 60,000 or 20,000?

A: Liabilities are the obligations of the business which it needs to be paid out to third parties or…

Q: 9:41 V1.185G 19% KB/s expert.chegg.com/q Chegg Hi Rise obtained planning 14 permission to build a…

A: To discuss the accounting treatment for Hi-Rise in their financial statements for the year ended 31…

Q: A9 Given that entitlements account for 51% of the federal budget, do you think that they are worth…

A: Budget - A budget is a financial projection of future sales and expenses for a company. Budgets for…

Q: Q.4[q] Evalinte uhether the follouwing poject is feasible or not Net Cash Floe CRs) 55,000 Year…

A: CF0 = - 55000 CF1 = 15000 CF2 = 20000 CF3 = 25000 CF4 = 20000 CF5 = 30000 r = 10% n = 5 years

Q: Year 012 Cash flow 58000 -34000 -45000 G H What is the IRR? If the required return is 12%, should…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: 20,000 20,000 20,000 360,000 200,000 360,000 8.6 Which of the following best explains what is meant…

A: 8.6 Capital Expenditures are the expenses incurred by an organization for acquiring, upgrading, and…

Q: Make or Buy Analysis [LO 7–3]“In my opinion, we ought to stop making our own drums and accept that…

A: 1. Decision: If company buys drum, it can gain 0.6 per drum. That is total gain is $36,000…

Q: 3) Profitability Index 4) Internal Rate of Return

A: Profitability index is a kind of capital budgeting technique that evaluates a project based on its…

Q: Jefferson Memorial Hospital is an investment center as a division of Hospitals United. During the…

A: Residual income is also known as economic value added (EVA) and represents the true economic profit…

Q: 5 Hanse, Inc., has the following two mutually exclusive projects available. 15:58 Year 012345…

A: Step 1: The calculation of the crossover rate and the NPV ABCD1YearProject AProject BIncremental…

Q: 10 For questions 10-12, refer to the following problem: A manufacturing company is planning to make…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following might be used by a project manager for forecasting in a project such that…

A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: Project A B C D Investment Required $ 200,000 $ 152,000 $ 100,000 $ 170,000 Present value of Cash…

A: Profitability index = (present value of cash inflows )/Initial investment Net present value is…

Q: Dinakayaten Company is reviewing the following data relating to an energy saving investment…

A: Dinakayaten Company is reviewing the following data : Calculate annual savings needed to make…

Q: 21. How long will it take 300g of cobalt to decay into 10 grams if its half life is 5.3 years? A.…

A: Here, N(t)=10N0(t)=300t12=5.3

Q: When would you recognize revenue for this payment? What method of accounting would you use for this…

A: Introduction: In normal cases, revenue is recognized when the work is complete. But, in case of…

Q: 13:27 46 اس < HW5- Ch11 简答题 1. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year…

A: Payback period is the length of time required to recover the cost of Investment. It is ccalculated…

Q: P2 25. The city treasury began with $1,100,000 at the beginning of the year. Each day since, tax…

A: Tax revenues will add to the city treasury. On the other hand daily expenditure will cause the…

Q: NPV Project A Project X $0 Cost of Capital 0% 22% 30% 12% What is the IRR of Project A? O A. 12% В.…

A: Internal rate of return Internal rate of return is the method of capital budgeting that measures the…

Q: oblem 9-13 NPV versus IRR [LO1, 5] nsider the following two mutually exclusive projects: Year Cash…

A: YearCash flow (X)Cash flow (Y)0-$19,600-$19,6001$8,750$9,9002$8,900$7,7003$8,700$8,600

Q: At year-end, the Circle City partnership has the following capital balances: Manning, Capital…

A: A partnership is an agreement between two or more partners where partners agree to work together for…

Q: 2 3 4 5 6 7 8 9 ear 0 1 2 Cash Flow 58000 -34000 -45000 What is IRR for this project? If the…

A: We will use some capital budgeting tools here. Use of capital budgeting tools helps us to find if a…

Q: [£2,500,000 ×0.04 × PVAF(@7%,3)] +[£2,500,000 × PVF(@7%,3)]

A: FUTURE VALUE Future Value is the Value of Present Cash Flow at any Future Date. Future value is…

Q: 25. Winston Corp, manufactures widgets. The company is setting up a new 7-year project i Jersey. The…

A: The OCF refers to the generation of cash by the company during its normal operations. It helps the…

Q: Question 15 A project has an estimated sales price of $86.25 per unit, variable costs of $51.48 per…

A: Since you have posted multiple questions, we will do the first one for you. Please post the other…

Q: A property purchased with $000,000 of equity investment and $1,200,000 of loan will have a leverage…

A: The leverage ratio is a financial metric that compares the amount of debt used to finance an asset…

Q: PA6. LO 11.3 Gimli Miners recently purchased the rights to a diamond mine. It is estimated that…

A: Depletion expense is a non-cash expense in a accrual accounting method which is used to allocate the…

Q: We find the following information on NPNG (No-Pain-No-Gain) Inc.: EBIT = $2,000,000 Depreciation =…

A: Here, EBIT is $2,000,000Depreciation is $250,000Change in net working capital is $100,000Net capital…

Q: 1) Pay back period 2) Net present value 3) Profitability Index 4) Internal Rate of Return

A: The payback period is the amount of time it takes a business to recoup invested funds or reach a…

Q: What is the payback period for the PHD programme?

A: The payback period is the tenure in which the initial cost can be recovered. It can be calculated in…

Q: Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated…

A: To calculate the NPV of the investment, we need to discount the cash flows back to their present…

Q: Again, you are considering two mutually exclusive projects. Machine A: This project costs $10…

Q: ABC Company had the following expenditures related to a software: Costs to develop the software for…

A: In case of intangible asset, expenditure incurred on research should be recorded as an expenses.…

Q: but in 4 years, the cost will b mpany sets aside $8 million will the inflation rate have to unt of…

A: Inflation rate can be calculated usning below formula Inflation rate = (Current value - Base value)…

Q: At the beginning of 2020, your company buys a $32,400 piece of equipment that it expects to use for…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 $80 $200 2…

A: 1. NPV (Net present value ) is computed by deducting initial investment from present value of cash…

Q: langy, Inc. produces and sells salsa, based on an award-winning family recipe. As part of its annual…

A: Fixed Cost refers to the costs, which remain fixed in the total amount with increases or decreases…

Q: Problem 10-10 (Algo) Interest capitalization; weighted-average method [LO10-7] On January 1,…

A: The question is based on the concept of Borrowing cost in Financial Accounting. Borrowing cost that…

Q: Required information [The following information applies to the questions displayed below.] On…

A: A company that has significant influence in another company’s voting stock is known as the Holding…

Q: Note: Assume i = 13% %3D Period A В C D -2500 -1000 2500 -3000 1 5400 -3000 -7000 1500 2 14400 1000…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: 1,356.95 2,618.83 5,237.66

A: The yearly cost of acquiring, running, and sustaining an project beyond its entire life is known as…

Q: The entity incurred the following expenses in developing a new technology Research for new…

A: Research and development costs are those costs which are incurred to acquire and application of…

Q: Information for Hobson Corporation for the current year ($ in millions): Income from continuing…

A: Income from the continuing operations are given before tax is = $230Add:Non deductible portion of…

Q: 24. Assume that your company faces the following investment opportunities: Initial cash outflow PI…

A: The question is related to the Capital Rationing . Capital rationing refers to a situation where a…

Q: Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Question

Big Game, Inc., is a manufacturer of hunting
supplies. The following is a summary of the
company's annual payroll-related costs.
$ 6,910,000
Wages and salaries expense (of which $2,200,000 was
withheld from employees' pay and forwarded directly
to tax authorities)
Payroll taxes
580,000
Workers' compensation premiums
250,000
Group health insurance premiums
725,000
Contributions to employees' pension plan
450,000
a. Compute Big Game's total payroll-related
costs for the year.
b. Compute the net amount of cash actually
paid to employees (their take-home pay).
c-1. Express total payroll-related costs as a
percentage of total wages and salaries expense.
c-2. Express total payroll-related costs as a
percentage of employees' take-home pay.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Discontinuing operations for a product or a service line

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A4 9a We find the following information on NPNG (No-Pain-No-Gain) Inc.: A4 9a EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000 These numbers are projected to increase at the following supernormal rates for the next three years, and 5% after the third year for the foreseeable future: EBIT: 20%Depreciation: 10%Change in net working capital: 15%Net capital spending: 10% The firm’s tax rate is 35%, and it has 1,000,000 outstanding shares and $8,000,000 in debt. We have estimated the WACC to be 15%. a. Calculate the EBIT, Depreciation, Changes in NWC, and net capital spending for the next four years.
00 FI 96 R %24 JAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Print Item Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost c capital of 12%. The patent is expected to generate the following amounts of annual income and cash flows: Year 1 Year 2 Year 3 Year 4 Net income $5,100 $6,500 $6,300 Operating cash flows 18,400 18,200 (Click here to see present value and future value tables) 006' A. What is the NPV of the investment? Round your present value factor to three decimal places and final answer to the nearest dollar. 24 B. What happens if the required rate of return increases? If the required rate of return increases, Previous Check My Work 3:54 PM 5/3/2022 dy insert prt sc f8 91 backspa & 7. 4. 5.
G.219.
Qd 154.
A4 9b A4 9a We find the following information on NPNG (No-Pain-No-Gain) Inc.: EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000 These numbers are projected to increase at the following supernormal rates for the next three years, and 5% after the third year for the foreseeable future: EBIT: 20%Depreciation: 10%Change in net working capital: 15%Net capital spending: 10% The firm’s tax rate is 35%, and it has 1,000,000 outstanding shares and $8,000,000 in debt. We have estimated the WACC to be 15%. b. Calculate the CFA* for each of the next four years, using the formula CFA* = EBIT(1 – T) + Depr – ΔNWC – NCS.
Bid 7.05 Ask EURUSD 1M FWD EURUSD 2M FWD 14.99 15.15 EURUSD 3M FWD 22.57 23.05 EURUSD 4M FWD 30.25 30.55 EURUSD 5M FWD 38.03 38.43 EURUSD 6M FWD 45.91 47.2 EUR/USD Spot 7.34 1.1320 1.1322 What is the average annualized forward premium/discount for the EUR if you use the 4M forward contract?
Your company has a project available with the following cash flows: Year 0 1 2345 Cash Flow -$80,900 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
Q29 Consider the following costs associated with all work packages (WP A and WP B) of a project: WP A B Labor hours Type 1 30 5 Labor hours Type 2 30 20 Labor hours Type 3 10 60 The rate of Labour hours Type 1 is $15. The rate of Labour hours Type 2 is $25. The rate of Labour hours Type 3 is $35. Calculate the total cost of the project. Material Equipment $500 $200 $100 $1,000 Subcontracts $8000 $2000 Other $300 $400
Accounting Problem 10-10 (Algo) Interest capitalization; weighted-average method [LO10- 7] On January 1, 2021, the company obtained a $3 million loan with a 12% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,230,000 March 1, 2021 720,000 June 30, 2021 380,000 October 1, 2021 670,000 January 31, 2022 990,000 April 30, 2022 1,305,000 August 31, 2022 2,340,000 On January 1, 2021, the company obtained a $3 million construction loan with a 12% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $5,600,000 and $7,600,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: 1. Calculate the amount of…
devrat
Sh56
27. Problems with IRR [LO5] McKeekin Corp. has a project with the following cash flows: Year 0 1 2 Cash Flow $20,000 -26,000 13,000 What is the IRR of the project? What is happening here?