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Author Question: Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 ... (Read 44 times)

luvbio

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Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:
 a. Any differences are paid in or refunded as appropriate
  b. Line 7 accommodates fraction differences, which accommodates rounding
  c. When differences occur, the numbers are adjusted before the report to balance
  d. None of the above

Question 2

What is important to understand about the label pro forma?
 
  a. Pro forma refers to GAAP-based financial statements.
  b. Pro forma requires firms to present two distinct net profit amounts in their Form 10-Ks.
  c. Pro forma relates to the amount of debt in a firm's capital structure.
  d. Pro forma earnings or financial statements are sometimes based on a firm's own definition which is not technically a correct definition.
 
  Use the following selected financial information for Wilcox Corporation to answer questions 11-20.
  Wilcox Corporation
  Income Statement
  For the Year Ended December 31, 2015
 
  Net sales 2,870
  Cost of goods sold 1,985
  Gross profit  885
  Operating expenses 620
  Operating profit  265
  Interest expense 40
  Earnings before taxes  225
  Income tax expense 80
  Net profit  145
 
  Wilcox Corporation
  Balance Sheet
  December 31, 2015
 
  Assets Liabilities and stockholders' equity
   Current assets Current liabilities
   Cash 25 Accounts payable  85
   Short-term investments 15 Accrued liabilities 45
   Accounts receivable 70 Total current liabilities 130
   Inventory 150 Long-term debt 240
  Total current assets 260 Total liabilities 370
  Long-term assets Stockholders' equity
   Net PPE 390 Common stock and PIC 80
   Goodwill 210 Retained earnings 410
   Total stockholders' equity 490
  Total assets 860 Total liabilities and equity 860
 
  WilcoxCorporation
  Statement of Cash Flow Information
  For the Year Ended December 31, 2015
 
  Cash from operating activities 150
 
  Investing activities:
   Capital expenditures  60
   Acquisitions  10
 
  Financing activities:
   Proceeds from long-term borrowing  50
   Payments on long-term borrowing  25
   Payments of cash dividends  20
 
  Cash paid for interest  10
  Cash paid for income taxes  75



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stillxalice

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Answer to Question 1

B

Answer to Question 2

b




luvbio

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Reply 2 on: Jul 6, 2018
Wow, this really help


bigsis44

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Reply 3 on: Yesterday
Gracias!

 

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