can you please just do 1 and 2 do not do 3

+ Jeremy owns and operates a small regional trucking she would have to run Jeremy's tax return through the o company, Magenta Trucking. His company has a fleet appropriate software, yet she could see that Jeremy of six trucks, two full-time employees, and a bank of had a big tax liability. "It wouldn't surprise me," she 15 contract drivers who he hires as needed. Jeremy said, "that you will owe about $9.000 on federal taxes, earns enough money to make what he considers and $2,000 in state taxes." Looking grim. Jeremy an acceptable living. Revenue for the company is responded, "It's horrible, but I was expecting bad news." sporadic because demand for his trucking service Rebecca then asked Jeremy why doesn't he make is unpredictable. At times he does not have enough reasonable estimated tax payments when they are trucks and drivers to meet demand. At other times he due. Jeremy said, "When revenue comes in, I usually might have four or five trucks not in use for a week. need it for an urgent purpose, like paying for rent, As with other business firms, Jeremy is required paying the truckers, paying salaries, maintaining my to pay estimated taxes each quarter. His federal and trucks, and paying the utility bills. I also need to take state tax payments are due in April, June, September. enough of our sales revenues to pay my living expenses. and January. When revenues have been high. Jeremy I guess I pay taxes with whatever is left over." has enough money to pay the estimated taxes. When Rebecca responded, "I hear you Jeremy, but you he does not pay the estimated taxes on time, he has to have got to fix your cash flow problem." pay late penalties to the U.S. Treasury. Jeremy keeps enough cash on hand to last about two weeks. Case Questions In late March of a recent year, Jeremy met with his tax attorney Rebecca to review the documentation 1 What is your opinion about whether or not Jeremy has a cash flow problem? necessary to file his federal and state income taxes for 2 What would you recommend that Jeremy do from a the year. She noted that for two of the quarters, Jeremy management standpoint to have enough money to pay sent the United States Treasury and the New Jersey his taxes? Income tax bureau about $50 each. Rebecca said that 3 What budgeting mistakes might Jeremy be making