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Posted: March 28th, 2024
Use the following information from separate companies a through f to compute
1. Use the following information from separate companies a through f to compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?Net Income (Loss)Interest ExpenseIncome Taxesa.$140,000$48,000$ 35,000b.140,00015,00050,000c.140,0008,00070,000d.265,00012,000130,000e.79,00012,00030,000f.(4,000)12,00002. Tony Newbern, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $12 per hour, and his wages are subject to no deductions other than FICA â Social Security, FICA â Medicare, and federal income taxes. He claims two withholding allowances. Compute his regular pay, overtime pay (for this company, workers earn 150% of their regular rate for hours in excess of 40 per week), and gross pay. Then compute his FICA tax deduction (use 6.2% for the Social Security portion and 1.45% for the Medicare portion), income tax deduction (use the wage bracket withholding table of Exhibit 11A.6), total deductions, and net pay. (Round tax amounts to the nearest cent.)
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