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3 years ago

What is the theory that tax cuts can raise supply called

2 answers:

8 0

The theory that tax cuts can raise supply is called "supply side economics" or "trickle down economics." These policies were strongly supported by the Reagan Administration in the United States during the 1980s in the hopes of promoting economic growth. The theory functions that the cutting of taxes will help to promote economic growth and development.

MrRissso [65]3 years ago

4 0

It is SUPPLY-side economics

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Moore's Law states that:

shepuryov [24]

Answer:

A. Chip performance per dollar doubles every eighteen months.

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4 years ago

The financial statements of Hainz Company appear below:

Iteru [2.4K]

Answer:

(1) 2.33 (2)11.42857 times (3) 31.9375 days (4) 3.846154 times (5) 87.6 days (6) 6.00 times (7) 15.75% (8) 1 times (9) 0.35 (10) 14%

Explanation:

Solution

(1) Current ratio:

Current Ratio = Current Asset / Current Liability = =140000/60000 = 2.33

(2) The return of common equity of stockholders:

Accounts receivable turnover ratio = the net credit sales/ average accounts receivable = $400000/$35000

11.42857 times

(3) Accounts collection period = 365/Accounts receivable turnover ratio =365/11.42857

31.9375 days

(4) Test acid ratio:

The Inventory Ratio Turnover = Cost of Goods Sold/Average Inventory

= $2,50,000/$65000

3.846154 times

(5) Average day to sell inventory = Inventory/Cost of Sales *365

=60000/250000*365

87.6 days

(6) The interest earned times:

Times Interest Earned = (Income before taxes and interest)/interest expense

= ($90000+18000)/18000

= 6.00 times

(7)The Profit Margin = Net Income / Sales

= 63000/400000

=15.75%

(8) The asset Turnover = Sales or Revenues / Total Assets

= $400000/400000 = 1 times

(9) Debt to asset ration = Total Liability / Total asset

= $140000/$400000

=0.35

(10)The return on asset ratio = Net Income/Average total asset

= 63000/450000 =14%

Now,

The total current assets = total assets - Net property, plant, equipment = $400000-$260000 = $140000

The Total current liabilities = [accounts payable + notes payable] $20000 + 40000 = $60000

The Average Account Receivable = (Opening Debtors+Closing Debtors)/2 = ($30000+$40000)/2 = $35000

The Average Inventory = (Opening Inventory+Closing Inventory)/2 = ($70000+$60000)/2 = $65000

Long-term debt + Equity = Total liabilities and equity – Total current liabilities = $275.00 – 65 = $201.00

The Total liability = Accounts Payable+ Notes Payable+Bonds Payable = $20000+40000+80000 = 140000

The Average Total asset = (Total opening asset+ total closing asset)/2 = ($400000+$500000)/2 = $4,50,000

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3 years ago

Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacat

xz_007 [3.2K]

Answer and Explanation:

The journal entries are shown below:

a. Vacation and Holidays expenses Dr. $45,000

To vacation and Holidays payable $45,000

(Being the Vacation pay is recorded)

For recording this we debited the vacation and holidays expense as it increase the expenses and credited the vacation & holidays payable as it also increase the liabilities

b. Pension Expense Dr. $28,000 ($400,000 × 7%)

To Pension Liability $28,000

(Being the pension benefit is recorded)

For recording this we debited the pension expense as it increase the expenses and credited the pension liability as it also increase the liabilities

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3 years ago

Required information [The following information applies to the questions displayed below.] Simon Company’s year-end balance shee

jek_recluse [69]

Answer:

(1) Debt and equity ratios. (I guess the years should be 2017 and 2016)

debt ratio = liabilities / assets

equity ratio = stockholder's equity / assets

debt ratio 2016 = $155,750 / $411,250 = 37.87%

debt ratio 2017 = $202,575 / $484,000 = 41.85%

equity ratio 2016 = $255,500 / $411,250 = 62.13%

equity ratio 2017 = $281,425 / $484,000 = 58.15%

(2) Debt to equity ratios. (2017 and 2016)

debt to equity ratio = liabilities / stockholders' equity

debt to equity ratio 2016 = $155,750 / $255,500 = 60.96%

debt to equity ratio 2017 = $202,575 / $281,425 = 71.98%

Explanation:

average liabilities 2017 = ($129,900 + $75,250 + $98,500 + $101,500) / 2 = $202,575

average liabilities 2016 = ($75,250 + $51,250 + $101,500 + $83,500) / 2 = $155,750

average assets 2017 = ($523,000 + $445,000) / 2 = $484,000

average assets 2016 = ($445,000 + $377,500) / 2 = $411,250

average stockholders' equity 2017 = $484,000 - $202,575 = $281,425

average stockholders' equity 2016 = $411,250 - $155,750 = $255,500

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3 years ago

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3 years ago