Other sets by this creator
Selected financial data for Surf City and Paradise Falls are as follows:
- Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. Which company has the higher ratio? 2. Calculate the return on assets for Surf City and Paradise Falls. Which company appears more profitable? 3. Calculate the times interest earned ratio for Surf City and Paradise Falls. Which company is better able to meet interest payments as they become due?
Jocame Inc. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early in the following year, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administration, the employees’ earnings records were inadvertently destroyed.
None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% and Medicare tax at the rate of 1.5% on salary. Data on dates of employment, salary rates, and employees’ income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records:
- Compute the amounts to be reported for the year on each employee’s Wage and Tax Statement (Form W-2).
- Compute the following employer payroll taxes for the year: (A) social security, (B) Medicare, (C) state unemployment compensation at 5.4% on the first $10,000 of each employee’s earnings, (D) federal unemployment compensation at 0.8% on the first$10,000 of each employee’s earnings, (E) total.
Tristan, Inc., applies the LIFO cost-flow assumption to value inventory. It began the current year with 2,000 units of inventory carried at LIFO cost of $20 per unit. During the first quarter, it purchased 8,000 units at an average cost of$40 per unit and sold 9,500 units at $60 per unit.
Assume the company does not expect to replace the units of beginning inventory sold; it plans to reduce inventory by year-end to 500 units. What amount of cost of goods sold should be recorded for the quarter ended March 31?
(The data for these exercises are available in Connect.) Information on the homes sold last year may be found in the North Valley Real Estate statistics report. At the .02 significance level, is there a difference in the variability of the selling prices of the homes that have a pool versus those that do not have a pool?