Putnam Distributors is contemplating whether or not to accept a special order.Putnam wishes to have after-tax cash receipts of $5200 if they accept the order.If Putnam has a tax rate of 35 per cent,what is the price the customer should be charged for their order?
A) $14 857
B) $ 3380
C) $ 8000
D) $ 7020

Question

Quizplus · Accepted Answer

To achieve after-tax cash receipts of $5200 with a 35% tax rate, the pre-tax amount should be $8000. This is because $8000 * (1 - 0.35) = $5200.

Putnam Distributors Is Contemplating Whether or Not to Accept a Special