Norlan Company Does Not Ring Up Sales Taxes Separately on the Cash

question 40

Multiple Choice

Norlan Company does not ring up sales taxes separately on the cash register.Total receipts for October amounted to $36,750.If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes?

• A)$1,750
• B)$1,838
• C)$88
• D)It cannot be determined.

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Definitions:

Horizon Value

The estimated value of a company or investment at the end of a specified period, taking into account all future cash flows beyond that point.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, based on assigned weights.

Free Cash Flow

A financial metric that represents the amount of cash a company generates after accounting for capital expenditures used to maintain or expand its asset base.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.