Back Out the Sales Tax or Gratuity from the Following

question 32

Short Answer

Back out the sales tax or gratuity from the following problems. Show the sales tax owed or the amount of money that the business or waitperson will receive. Round answers to the nearest cent. For a banquet, each guest pays $71.00, inclusive. A gratuity of 15% will have to be backed out. Sales tax: $_______________

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Definitions:

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.

Balance Sheet

A record that presents a summary of a business's assets, liabilities, and shareholders' equity at a given time.

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets.

Net Income

The profit remaining after all expenses, taxes, and costs have been deducted from total revenue.