Question

Jannet Company, currently pays its employees at the end of a week. The weekly payroll totals $400,000. If it were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be lending the firm ________ for a year.

Answer 1

The answer is $400,000

Step-by-step explanation:

Solution

The Jannet Company, presently pays its employees at the end of a week. The weekly payroll totals $400,000

The company would like to extend pay period for one week.

now,

The 52nd week for the current year will be paid in the 53rd week, that is, it will be paid in the next year.

Therefore, the employees would in effect be lending or borrowing the firm $400,000 for a year