User Account

All Pages

Cash flow problems

Assignment Help Financial Management
Reference no: EM131177963

Roofling Company paid wages of $319,600 this year. Of this amount, $193,900 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 4.3% for Roofling Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.

a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions $

b. Amount that Roofling Company would pay to the federal government for its FUTA tax $

c. Amount that the company lost because of its late payments.

Reference no: EM131177963

Questions Cloud

Creates retirement fund by depositing payments : A man creates a retirement fund by depositing payments at the end of each month for 20 years. For the first 10 years the deposits are 100 per month and for the last 10 years the deposits are 200 per month. The annuity earns a nominal rate of 9% conve..
Spend today to exactly match his desired cash flows : An investor would like to have $5,000 available at the end of each of the next 3 years. He has a choice of 3 bonds to invest in, each with a par value of $1,000: How much of each bond will he need to spend today to exactly match his desired cash flow..
Difference in face value-current market price of securities : Currently, yields to maturity on 1 year and 2 year us treasury securites are .602% and .852%. You can assume that for simplification purposes there are no coupon payments on these bonds and the yield to maturity is entirely due to the difference in f..
Combines the risk-free asset and the market portfolio : A portfolio that combines the risk-free asset and the market portfolio has an expected return of 7.2 percent and a standard deviation of 10.2 percent. The risk-free rate is 4.2 percent, and the expected return on the market portfolio is 12.2 percent...
Cash flow problems : Roofling Company paid wages of $319,600 this year. Of this amount, $193,900 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 4.3% for Roofling Company. Due to cash flow problems, the company did not make any SUTA payme..
What must the expected return on the market : A stock has an expected return of 10 percent, its beta is 1.10, and the risk-free rate is 4 percent. What must the expected return on the market be?
What is mitchells target fixed assets and sales ratio : Beasley Industries' sales are expected to increase from $5 million in 2013 to $6 million in 2014, or by 20%. Its assets totaled $3 million at the end of 2013. Beasley is at full capacity, so its assets must grow in proportion to projected sales. What..
Description of a balance sheet : Please provide a brief description of a balance sheet. What information can one get from the balance sheet?   Please find a recent balance sheet from a public company and comment on how the company finances its assets.
What’s wrong with cellphones : "DYO Final" is for a class I took called Literature for Children. It was a Design-Your-Own (DYO) paper on any topic you wanted pertaining to children's literature. In my paper, I explored the effect of sad literature on children. What’s wrong with ce..

Reviews

Write a Review

Financial Management Questions & Answers

  Expected and required rates of return

Assume that the risk-free rate is 4.5% and the market risk premium is 5%. What is the expected return for the overall stock market? What is the required rate of return on a stock with a beta of 2.1?

  What is your estimate of the current stock price

Ernie Manufacturing has projected sales of $155 million next year. Costs are expected to be $100 million and net investment is expected to be $17.5 million. There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent a..

  Two bond issues outstanding

Erna Corp. has 6 million shares of common stock outstanding. The current share price is $89, and the book value per share is $8. Erna Corp. also has two bond issues outstanding. The first bond issue has a face value of $85 million, has a coupon of 6 ..

  Add value through active management of the fund

Suppose a PM who is managing against the Russell 1000 as a benchmark invests the fund so that the percentage of its assets invested in each sector matches each sector’s percentage weight in the index. How does that PM expect to add value through acti..

  What rate of return do they expect to earn on the stock

Eastern Electric currently pays a dividend of about $1.76 per share and sells for $26 a share. If investors believe the growth rate of dividends is 5% per year, what rate of return do they expect to earn on the stock?

  Conjunction with capital structure policy

Should dividend policy be established independently of or in conjunction with capital structure policy? If capital structure is then changed might this affect dividend policy?

  What is the project discounted payback

Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 --------------------------------------------- Cash flows -$1,000 $500 $500 $500 2.80 years 1..

  What are the monthly payments for traditional mortgage

Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. What are the monthly payments for a 30-year traditional mortgage? What are the payments for a 20-year traditional mortgage? Prep..

  Issue more shares and use the proceeds to lower its debt

Select the choice below that will make the quick ratio go up: Firm XYZ will issue more shares and use the proceeds to lower its debt. Suppose that this does not change operating income, interest rates, tax rates, or total assets. Which statement is m..

  Before-tax component cost of debt

KatyDid Clothes has a $120 million (face value) 25-year bond issue selling for 103 percent of par that carries a coupon rate of 9 percent, paid semiannually. What would be Katydid’s before-tax component cost of debt?

  What is the intrinsic value of the option

A pound call option with a strike price of $1.5 per euro is priced (i.e., the option premium) is at $0.04 per euro. The spot price is $1.45 per pound. What is the intrinsic value of the option? What is the profit or loss for the buyer of the call opt..

  Construction of plant to manufacture energy saving device

ELC Electrical Services is considering the construction of a plant to manufacture a new energy saving device for small offices. The company recently commissioned a $100,000, two-year study to assess the market demand for the proposed product.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd