Solve. -Midtown Antiques Collects 5% Sales Tax on All Sales. If

question 51

Multiple Choice

Solve.
-Midtown Antiques collects 5% sales tax on all sales. If total sales including tax are $1808.58, find the portion that is the tax. Round your answer to the nearest cent.

• A)$76.12
• B)$86.12
• C)$90.43
• D)$1722.46

Become proficient in preparing comprehensive budgets, including sales, production, and raw materials budgets.

Understand the concept and calculations involved in preparing a direct labor budget.

Analyze and calculate net operating income based on various budgeted information.

Determine the required budgeted purchases of raw materials based on production needs and inventory policy.

---

Definitions:

Accounts Receivable Balance

The accounts receivable balance represents the total amount of money owed to a company by its customers for goods or services rendered but not yet paid for.

Inventory Period

The time it takes to acquire and sell inventory.

Operating Cycle

The duration between the acquisition of inventory by a company and the receipt of cash from accounts receivable, indicating how quickly a company turns over inventory and collects debts.

Incremental Cash Flow

The additional cash flow an organization receives from taking on a new project.