Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I'm asked to pay owner's salary for a case study. My group wants me to pay out of gross profit and the question wants me
I'm asked to pay owner's salary for a case study. My group wants me to pay out of gross profit and the question wants me to cover the cost of our bank loan with additional amounts each year after. The bank loan is 3000$
Do I just subtract the bank loan from our gross profit and pay out the rest? Such that $6,000 - 3,000 = $3,000 for owner's salary?
The question reads:
1a) calculate the maximum salary the owners can pay themselves with the intention of keeping the following balances in the companys bank account:
- An amount equivalent to the bank loan
- An additional $1,000 in Y1, $3,000 in Y2 and $5,000 in Y3
Thank you,
Jessica
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started