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Kristi's Mentoring Had the Following Information for the Pay Period

question 20

Essay

Kristi's Mentoring had the following information for the pay period ending September 30:
$Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. - \begin{array} { | l | l | l | l | l | } \hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \\ \hline \begin{array} { l } \text { Cash-Payroll } \\ \text { Checking } \end{array} & & & & \\ \hline \end{array}$ Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
- $\begin{array} { | l | l | l | l | l | } \hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \\\hline \begin{array} { l } \text { Cash-Payroll } \\\text { Checking }\end{array} & & & & \\\hline\end{array}$

Definitions:

Initial Cash Balance

The amount of cash available in a company or individual's account at the start of a period.

Optimum

The most favorable condition or level for growth, reproduction, or success.

Holding Cash

The act of retaining liquid currency or cash equivalents by individuals or firms as a part of their financial strategy, to cover expenses or for speculative purposes.

Interest Rate

The percentage charged or paid for the use of money on a loan or investment, typically expressed as an annual percentage rate (APR).