The Following Are Relevant Account Balances from Winthrop Company's Comparative

question 17

Essay

The following are relevant account balances from Winthrop Company's comparative balance sheet and 2017 income statement.
$$\begin{array} { | l | c | r | } \hline & \text { December } 31,2017 & \text { January } 1,2017 \\\hline \text { Accounts receivable } & \$ 15,000 & \$ 19,000 \\\text { Prepaidinsurance } & 5,000 & 3 , 0 0 0 \\\text { Unearned revenue } & 8 , 0 0 0 & 11,000 \\\text { Salaries payable } & 9 , 0 0 0 & 5 , 0 0 0 \end{array}$$
Winthrop's 2017 income statement includes the following:
$\begin{array}{lr}\text { Sales revenue } & \$ 89,000 \\\text { Insurance expense } & 4,000 \\\text { Salaries expense } & 31,000\end{array}$
Determine the amount of cash paid for salaries during 2017.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of tax paid on any additional dollar earned.

Average Tax Rate

The ratio of the total amount of taxes paid to the total income of the taxpayer, indicating the burden of taxation.

Federal Personal Income Tax

A tax levied by the federal government on individuals’ earnings, varying in rate based on income level.