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Problem 1: Swifty Consulting Inc.'s gross salaries for the biweekly period ended August 24 were $13,500. Deductions included $743 for CPP, $254 for EI, and $6,262 for income tax. The employer's payroll costs were $743 for CPP and $356 for EI. Prepare journal entries to record (a) the payment of salaries on August 24; (b) the employer payroll costs on August 24, assuming they will not be remitted to the government until September; and (c) the payment to the government on September 15 of all amounts owed.
Financial Statement Analysis and Preparation
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An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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