A company?s fixed interest expense is $8,000; its income before interest expense and income tax is $32, 000. Its net income is $9,600. The company?s time interest earned ratio equals?

HM1030: Week 5 Assignment Worksheet Before you begin, save this document to your computer. You will need to submit your answers in the area indicated below. DIRECTIONS: 1. For this assignment, you will utilize the UMA Virtual Library, the Internet or a community library, and chapters 11 and 16 of your Principles of Financial Accounting textbook. Be sure to properly cite your resources in the textboxes with your answers. 2. Answer the following FOUR (4) questions. 3. Please remember to SAVE this document to your computer or \"My Documents\" on your computer. 4. Submit the saved file to your \"Assignment Drop Box\". For this assignment, you will use the UMA Virtual Library, as well as the Internet or a community library to answer the questions. Be sure properly to cite your resources. Tips for answering questions: Read the question more than twice, if necessary, to make sure you understand what you are asked to do. Find the key words in each question and construct your answer to address those key words or phrases of the question. Your answer should be organized and to the point. Keep your sentences short and simple. Pay attention to the answer length requirements (if stated). If necessary, go the extra mile and give examples to illustrate your point. Before you continue: Did you save this document to your computer? o No: Please save this document to your computer now. o Yes: Great! Let's get to work! (See next page for part 1) HM1030: Week 5 Assignment Worksheet Question 1: A. What is the beginning and end of the payroll process? B. Do automated payroll systems eliminate the human involvement in the process? C. What information is necessary in order to prepare for the processing of payroll? 19 points Directions to complete Question 1: TIP 1: See page 323: Payroll Reports, Records and Procedures and Highlights Chapter 11: Appendix 11 A - Payroll Reports, Records and Procedures Use short responses, in complete sentences with proper grammar and spelling Your answer should be no less than 8 sentences. Answer (A): Update employee master file. The payroll clerk will probably receive notification of a number of changes to employee information that impact the processing of payroll, such as withholding exemptions and pay rate changes. If so, update the employee master file in the payroll software with these changes. Process the payroll ahead of time. Devise a payroll-processing schedule that allows you ample time to process the payroll and to correct detected errors before employees receive their paychecks. For example, perform payroll processing two or three days before the actual pay date. Make changes to the employee payroll record, if applicable. This includes: address changes; payroll deduction changes, such as W-4 and state income tax form changes; and voluntary deduction changes, such as retirement and health benefits. Furthermore, enter new hire information for employees hired in the current pay period. Compute timekeeping data from time cards or time sheets and enter the hours to be paid into the system, such as regular, overtime and vacation hours. If you use a computerized timekeeping system, you can import the time into the payroll software. All you have to do is ensure the time is transported correctly and make the necessary edits. Pay other types of income, such as bonuses, commissions and retroactive pay due to a pay raise. Perform other adjustments, such as additional pay or wage deduction due underpayment or overpayment from a prior pay period. Prorate the salaried employee pay if she terminates but does not work the entire pay period, and enter stop dates in the payroll software to stop future payments. Furthermore, prorate the salaried new employee pay if she’s hired after the current pay period begins. For instance, if she starts working on the fourth day of the biweekly pay period, pay her for seven working days instead of 10. Print reports that allow you to verify the payroll before you print paychecks and generate the direct deposit file. Make adjustments, if necessary. Print paychecks/pay stubs. Generate the direct deposit file and forward to the bank. Contact the bank and ensure it is appropriately received, and verify the amount received. HM1030: Week 5 Assignment Worksheet Print payroll registers showing employees’ gross-to-net wages for the current payroll. File in a confidential storage area. Keep these records for a minimum of three years. Keep timekeeping records and those upon which wage computations are based for a minimum of two years. Print and distribute reports needed by related departments, such as human resources and finance, for benefits administration and reconciliation purposes. If a separate department or company handles payroll taxes, forward the necessary tax records for each pay period to the appropriate individual. Answer (B): Type your answer here Answer (C): Type your answer here SAVE YOUR ANSWERS... SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT (See next page for part 2) HM1030: Week 5 Assignment Worksheet Question 2: A company's fixed interest expense is $8,000; its income before interest expense and income tax is $32, 000. Its net income is $9,600. The company's time interest earned ratio equals? 10 points Directions to complete Question 2: TIP 1: Page 320: Times Interest Earned Answer: Type your answer here SAVE YOUR ANSWERS... SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMEhnmwNT Question 3: An employee earned $4,300 working for an employer. The current rate for FICA Social Security is 6.2% and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is? Directions to complete Question 3: TIP: See page 313-314: Employer Payroll Taxes Answer: Type your answer here SAVE YOUR ANSWERS... SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT (See next page for part 4) 10 points HM1030: Week 5 Assignment Worksheet Question 4: A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows if $500,000 and average total assets of $2,500,000. The cash flow on total assets ratio equals? 10 points Directions to complete Question 4: TIP 1: See page 484: Cash Flow on total Assets Answer: Type your answer here SAVE YOUR ANSWERS... SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT You will earn additional points if you correctly submit the worksheet to the assignment dropbox. 1 point You will earn additional points if you use proper sentence structure, grammar and spelling. 5 points 55 points TOTAL POINTS NEED MORE HELP? Visit the STUDENT SUCCESS CENTER! Contact your INSTRUCTOR, ADVISOR, ACADEMIC COACH