https://file.aiquickdraw.com/mathbot/file/17259286702161alb9fu0.jpg

To solve the problem in the image, we'll calculate the GST remittance or refund for ABC Company. GST (Goods and Services Tax) is typically a percentage of sales and purchases. In Canada, the GST rate is generally 5%. Here’s how to calculate the GST remittance or refund:

1. **Calculate GST on Sales**:  
   GST on sales = $ \text{Taxable Sales} \times \text{GST rate} $  
   GST on sales = $ 27307.57 \times 0.05 = 1365.3785 $

2. **Calculate GST on Purchases**:  
   GST on purchases = $ \text{Taxable Purchases} \times \text{GST rate} $  
   GST on purchases = $ 25001.33 \times 0.05 = 1250.0665 $

3. **Determine GST Remittance or Refund**:  
   GST Remittance/Refund = GST on Sales - GST on Purchases  
   $ = 1365.3785 - 1250.0665 = 115.312 $

Since the result is positive, ABC Company needs to remit $ \$115.31 $ to the government.

**Your Answer:**
115.31 (This is a remittance, as it's a positive number.)

Would you like more details on this calculation, or do you have any other questions?

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Here are 5 related questions you might explore:

1. How would the calculation change if the GST rate were different?
2. What happens if the GST on purchases is greater than the GST on sales?
3. How do companies typically report GST remittances or refunds?
4. What are the implications of consistently having to remit GST?
5. How does GST affect cash flow management in a business?

**Tip:** Always double-check the GST rate applicable in your region, as it might vary depending on local regulations or specific goods and services.

ABC Company has taxable sales of $27307.57 and taxable purchases of $25001.33. Calculate the amount of their GST remittance/refund. Enter a remittance as a positive number and a refund as a negative number. Hint: Both taxable sales and taxable purchases are the amounts before any sales taxes are applied.

Calculate the GST remittance or refund for a company with taxable sales of $27307.57 and taxable purchases of $25001.33 using the 5% GST rate. Follow the step-by-step solution to determine if the company needs to remit GST or receive a refund.

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