Suppose That Wind Em Corp

question 5

Multiple Choice

Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $12 million. The firm also has a profit margin of 20 percent, a retention ratio of 30 percent, and expects sales of $22 million next year. If all assets and current liabilities are expected to grow with sales, what is the necessary increase in assets?

• A) $6,240,000
• B) $6,333,333.33
• C) $8,333,333.33
• D) $4,833,000

Comprehend the impact of federal income taxes withheld on employer's payroll tax expenses.

Grasp the timing and liability considerations of FICA taxes.

Recognize the control benefits and considerations of using a separate payroll bank account.

Understand the distribution and purpose of federal unemployment compensation taxes.

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Definitions:

Stress Disorders

Disorders that are primarily caused by significant stress, including post-traumatic stress disorder (PTSD) and acute stress disorder.

Women

Female humans, often discussed in contexts involving gender-specific issues in health, society, and rights.

Develop

The process of growth or progression, often involving stages of natural, social, or economic changes and advancements.

Fight-Or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival, preparing the body to either fight or flee.