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3 years ago

How can the fiscal policies of a country influence the finances of a single individual?

1 answer:

6 0

" When the economy is tight with high unemployment and poor circulation of money: Policy can be changed to allow more government spending which stimulates employment and growth. During the great depression, congress wanted to cut spending to balance the budget. Nobody had any money to spend and the economy got worse. Finally FDR started some public work projects that got many people working. When people have jobs they spend money and that circulation is what has kept our country booming for mostly 70 years. "

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. A firm begins the year with a Book Value of $10 million. During the year it generates $5 million in net profits. It paid $1 mi

Keith_Richards [23]

Answer:

b) $12 million

Explanation:

The new Book Value of the firm at the bigining of next year is $12 million.

In the calulation of Net Pfofit, Interst on loan has already been deducted, so deducting it from the total calculation will be wrong.

hence, only dividend paid will be removed from the addition of the Book Value anf the Net profit.

Closing balance = Opening Book Value + Net Profit - Dividend Paid

Note - The Net Profit is already ne of interest on loan.

Closing balance = $10 + $5 - $3

Closing balance is $12

3 0

3 years ago

Elliot is suing Acme, Inc., for a breach of contract, but because Acme has very little in assets, he asks the court to pierce th

Sergeu [11.5K]

Answer: The court would likely approve Elliot's request in the following situation: The corporation was under-capitalized from the beginning, and never had sufficient assets to operate as a viable business.

Under the given scenario i.e. for a breach of contract , the condition will apply if the corporation i.e. Acme Inc. was under-capitalized from the start, and they never had predominating assets to work as a viable organization.

Therefore the correct option is (a)

7 0

3 years ago

Profitability Analysis Kolby Enterprises reports the following information on its income statement: L04 Net sales ......... . ..

notsponge [240]

Answer:

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 - 150,000) / 250,000

= 40%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 - 150,000 + 15,000 - 10,000 - 10,000 - 50,000) / 250,000

= 18%

With new product:

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 + 45,000 - 150,000 - 38,000) / (250,000 + 45,000)

= 36.3%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 + 45,000 - 150,000 - 38,000 + 15,000 - 10,000 - 10,000 - 50,000) / (250,000 + 45,000)

= 52,000 / 295,000

= 17.6%

3 0

3 years ago

Shady Lane's income tax payable account decreased from $14 million to $12 million during 2016. If its income tax expense was $80

maria [59]

Answer:

A cash outflow of $82 million.

Explanation:

Because during the year Shady had taxes expenses for $80 million but then Shady cancelled $2 million of the Income Tax Payable account, which decreased from $14 million to $12 million.

3 0

3 years ago

Public domain which group of consumers would find this ad offensive? middle class homemakers small business owners assembly line

RSB [31]

I believe it's B but I am not positive. I'm taking the test right now.

8 0

2 years ago