The Following Data Applies to the July 15 Payroll for the Woodard

question 92

Short Answer

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Assume:
FICA-OASDI is 6.2% based on a limit of $128,400.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the total overtime earnings.

Understand the impact of corporate tax rates on WACC and individual cost components.

Know how to identify the appropriate cost of debt for WACC calculations.

Learn the relevance of weighted average flotation costs in investment decisions.

Understand the determination of the cost of equity using the dividend discount model and CAPM.

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Definitions:

Premium Wheat

Refers to wheat that is of higher quality than standard wheat, often meeting certain criteria for size, condition, and protein content, and therefore commands a higher price in the market.

Cost Recovery Method

An accounting technique used when the future collectibility of revenue is uncertain, recognizing revenue only when cash payments are received.

Revenue Recognition

An accounting guideline that specifies when revenue should be recognized and recorded.

Installment Sales Method

An accounting method used to recognize revenue from sales when payments are received in installments over a period of time, instead of at the point of sale.