Use the Table for the Question(s)below

question 53

Multiple Choice

Use the table for the question(s) below.
The data above shows the net working capital requirements for Flinder's Camping,a company that makes tents.All figures are in thousands of dollars.
-What can be considered the firm's permanent working capital?

• A)$390,000
• B)$510,000
• C)$720,000
• D)$1,030,000
• E)$640,000

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Definitions:

FICA Taxes

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from an employee's paycheck.

Tax Expense

The amount of taxation a company is required to pay to various tax authorities, based on its earnings.

SUTA Tax Payable

The liability owed by employers to the state for the State Unemployment Tax Act, used to fund unemployment benefits.

Payroll Tax Expense

Payroll Tax Expense is the employer's cost associated with the employment of staff, including taxes such as social security and Medicare taxes that must be paid based on salaries.