At the end of 2018, accounts receivable amounted to $163,000. At the beginning of the year it was $242,000. Net credit sales for the year amounted to $720,000 and net income was calculated to be $197,000.

Determine the days sales outstanding ratio and the accounts receivable turnover ratio.

Do not enter dollar signs or commas in the input boxes.
Round your answer to 2 decimal places.

Days Sales Outstanding = Answer days
Accounts Receivable Turnover = Answer times

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

Example 5-7

Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $12,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are:

Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:

Under SUTA for Massachusetts on taxable payroll of $18,600, the contribution rate is 4%.

Under SUTA for New Hampshire on taxable payroll of $34,000, the contribution rate is 6.65%.

Under SUTA for Maine on taxable payroll of $81,800, the contribution rate is 2.9%.

Under FUTA, the taxable payroll is $117,000.

Compute the following; round your answers to the nearest cent.

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA.   Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:

Under SUTA for New Mexico on taxable payroll of $28,000, the contribution rate is 3.9%.

Under SUTA for Colorado on taxable payroll of $23,000, the contribution rate is 8.95%.

Under SUTA for Utah on taxable payroll of $65,000, the contribution rate is 4.1%.

Under FUTA, the taxable payroll is $94,500.

Compute the following; round your answers to the nearest cent.

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2018 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.

Example 5-8

1. The Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA tax rate. The company would pay unemployment taxes of:

   FUTA $215,600 × 0.006	=	$1,293.60
   SUTA $255,700 × 0.056	=	14,319.20
   Total taxes		$15,612.80

2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each employee’s earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this week’s pay. The unemployment taxes that the company must pay for this week’s pay would be $48.
   
   FUTA tax (both over $7,000) = $0.00
   SUTA tax ($1,000 × 0.048) = $48.00
   ($500 of each employee’s pay is under the state taxable limit of $12,000)

In September 2019, Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid each employee.

An analysis of the company's payroll for the year shows total wages paid of $171,180. The salaries of the president and the vice president of the company were $20,100 and $15,800, respectively, for the four-month period, but there were no other employees who received wages in excess of $7,000 for the four months. Included in the total wages were $880 paid to a director who only attended director meetings during the year, $6,010 paid to the factory superintendent, and $2,030 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state.

In addition to the total wages of $171,180, a payment of $2,570 was made to Andersen Accounting Company for an audit it performed on the company's books in December 2019. Compute the following; round your answers to the nearest cent.

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

Example 5-1

Parlone Company has paid wages of $4,000 to an employee in State A. During the year, the employee is transferred to State B, which has a $7,000 taxable salary limitation for its state unemployment tax. The company has a credit of $4,000 against this $7,000 limit. Thus, the company has to pay State B's unemployment tax on only the next $3,000 of wages earned by that worker in State B during the remainder of the calendar year.

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Ohio. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Ohio. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $19,500; $3,000 were paid in Nebraska and the remainder in Ohio. Compute the following: round your answers to the nearest cent.

a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages
$________

b. Amount of SUTA tax the company must pay to Ohio on Porter's wages
$________

c. Amount of the net FUTA tax on Porter's wages
$_________

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2018 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.

Example 5-1

Parlone Company has paid wages of $4,000 to an employee in State A. During the year, the employee is transferred to State B, which has a $7,000 taxable salary limitation for its state unemployment tax. The company has a credit of $4,000 against this $7,000 limit. Thus, the company has to pay State B's unemployment tax on only the next $3,000 of wages earned by that worker in State B during the remainder of the calendar year.

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Michigan. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Michigan. Compute the following:

Round your answers to the nearest cent.

a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages
$

b. Amount of SUTA tax the company must pay to Michigan on Porter's wages
$

c. Amount of the net FUTA tax on Porter's wages
$

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers. Example 5-10 Applebaum Security Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2004 to 2013, inclusive, the company's total contributions to state unemployment compensation amounted to $18,135. For the calendar years 2014 to 2017, inclusive, the contribution rate for Applebaum was 3.7%. The contributions of each employer are credited to an account maintained by the State Unemployment Compensation Commission. This account is credited with contributions paid into the account by the employer and is charged with unemployment benefits that are paid from the account. Starting January 1, 2018, the contributions rate for all employers in State H will be based on the following tax-rate schedule: