Reference no: EM132178826

Question -

Q1. X Company had credit sales of $700,000 during the year. End of year accounts receivable was $60,000 and beginning accounts receivable was $40,000. Compute the company's receivables turnover ratio.

a. 0.07

b. 11.7

c. 14.0

d. 17.5

e. 35.0

Q2. An employee's pay rate is $75 per hour. Assume the FICA tax rate is 6.2% on the first $117,000 of annual earnings. Assume the Medicare tax is 1.45% of earnings on the first $200,000 of annual earnings and 2.35% for annual earnings above $200,000. The employee worked 40 hours during the current week and has cumulative earnings prior to the current week of $115,000. No other taxes were withheld. Compute the employee's net pay for the current week.

a. $2,770.50

b. $2,832.50

c. $2,876.00

d. $2,956.50

e. $3,000.00