A Palm Harbor startup budget includes equipment purchases of $56,200, office setup of $17,600, and first payroll reserve of $42,200. What total startup cash need should be shown?
Correct Answer
D) $116,000
Startup cash need includes all listed launch costs.
Why This Is the Correct Answer
Startup cash need includes all listed launch costs.
Why the Other Options Are Wrong
Option A: $73,800 startup control file
$73,800 startup control file is below the supported result for startup cash need; it likely skips a premium-pay or employer-cost component.
Option B: $98,400 license setup record
$98,400 license setup record is below the supported result for startup cash need; it likely skips a premium-pay or employer-cost component.
Option C: $59,800 business audit note
$59,800 business audit note is below the supported result for startup cash need; it likely skips a premium-pay or employer-cost component.
Memory Technique
Who controlled includes, who paid all, where is the Prepares Initial record?
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Startup budgeting and cash planning; verify the startup duty, registration, or financial setup before answering.
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