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3 years ago

What happens when the government finances a job creation project through taxes and borrowing?

1 answer:

8 0

What happens when the government finances a job creation project through taxes and borrowing? If the government finances a job through taxes and borrowing there are higher taxes or interest rates and that usually causes a decline in employment. The higher taxes and interest rates are imposed because they government is using up the funds to fund their current project so the higher rates are how the government will get the funds back.

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The following information applies to the questions displayed below.]

MrRissso [65]

Answer:

KORBIN COMPANY

Common Size Comparative Income Statements

For Years Ended December 31, 2017, 2016, and 2015

2017 % 2016 % 2015 %

Sales $ 555,000 100 $340,000 100 $278,000 100

Cost of goods sold 283,500 51.1 212,500 62.5 153,900 55.4

Gross profit 271,500 48.9 127,500 37.5 124,100 44.6

Selling expenses 102,900 18.5 46,920 13.8 50,800 18.3

Administrative expenses 50,668 9.1 29,920 8.8 22,800 6.0

Total expenses 153,568 27.7 76,840 22.6 73,600 26.5

Income before taxes 117,932 21.2 50,660 14.9 50,500 18.2

Income taxes 40,800 7.4 10,370 3.1 15,670 5.6

Net income $ 77,132 13.9 $40,290 11.9 $34,830 12.5

Explanation:

a) Data and Calculations:

KORBIN COMPANY

Common Size Comparative Income Statements

For Years Ended December 31, 2017, 2016, and 2015

2017 % 2016 % 2015 %

Sales $ 555,000 100 $340,000 100 $278,000 100

Cost of goods sold 283,500 51.1 212,500 62.5 153,900 55.4

Gross profit 271,500 48.9 127,500 37.5 124,100 44.6

Selling expenses 102,900 18.5 46,920 13.8 50,800 18.3

Administrative expenses 50,668 9.1 29,920 8.8 22,800 6.0

Total expenses 153,568 27.7 76,840 22.6 73,600 26.5

Income before taxes 117,932 21.2 50,660 14.9 50,500 18.2

Income taxes 40,800 7.4 10,370 3.1 15,670 5.6

Net income $ 77,132 13.9 $40,290 11.9 $34,830 12.5

KORBIN COMPANY

Comparative Balance Sheets

December 31, 2017, 2016, and 2015

2017 2016 2015

Assets

Current assets $ 52,390 $37,924 $51,748

Long-term investments 0 500 3,950

Plant assets, net 100,000 96,000 60,000

Total assets $152,390 $134,424 $115,698

Liabilities and Equity

Current liabilities $22,800 $19,960 $20,300

Common stock 72,000 72,000 60,000

Other paid-in capital 9,000 9,000 6,000

Retained earnings 48,590 33,464 29,398

Total liabilities and equity $152,390 $134,424 $115,698

b) Korbin's common size income statement shows each line item expressed as a percentage of the revenue or sales value. This analysis of individual financial statement items is also known as a vertical analysis of the financial statement, making line items comparison to a common base easy.

3 0

3 years ago

paced lines use some sort of conveyor to move output along the production line at a variable rate, so that operators do their wo

Fofino [41]

Paced lines use some sort of conveyor to move output along the production line at a variable rate, so that operators do their work as they need.

This statement is false.

What is conveyor?

A typical type of mechanical handling equipment that transports things from one place to another is a conveyor system. Conveyors are particularly helpful in situations when large or bulky materials need to be transported.

Therefore,

This problem is false staement.

To learn more about conveyor from the given link:

brainly.com/question/202242

8 0

2 years ago

You run the Social Security Administration. What about this chart might worry you?

AURORKA [14]

Answer:

The amount of taxpayers that are part of the "older generation" is slowly rising and is higher than the amount in 1997.

Explanation:

Remember to run a successful government, you must have the income in which to run the government programs. Most of these funds come from taxpayer's. In this case, it is clear that younger people generally make more as well as are generally healthy, leading to a large amount of input of money into the government, with fewer withdrawals. This would give a huge boost to the government budget. Older people on the other hand tend to not work as much, so their taxes are generally lower. They also withdraw more from the Government through Social Security, and so leaves the government with a negative balance from them in most cases.

The chart on the other hand shows a increase of percentage of older people, which leaves a large gap in between the surplus and the spending, leading to a decrease of funding for the government. If this continues, the government would lose money, and would have to cut programs or face collapse. To fix this, they either have to, like stated above, cut programs, or give more taxes. Both are unacceptable to the American Public, which is what makes the government, as well as the average citizen, worried about the US government's funding surplus.

8 0

3 years ago

Read 2 more answers

A company forecasts sales of $91,500 for the quarter ended December 31. Its gross profit rate is 18% of sales, and its September

nlexa [21]

Answer:

Purchases= $57,530

Explanation:

Giving the following formula:

Production= 91,500*(1 - 0.18)= $75,030

Beginning inventory= $25,000

Desired ending inventory= $7,500

To calculate the budgeted purchases, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 75,030 + 7,500 - 25,000

Purchases= $57,530

6 0

3 years ago

A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days. Which of the followin

Delvig [45]

Answer:

- Inventory

- Current Liabilities

Explanation:

The journal to record the given transaction is shown below:

Inventory A/c Dr $50,000

To Accounts payable $50,000

(Being the purchase of inventory is recorded)

Since the inventory is a purchase which increases the inventory so the respective account is debited and the account payable is credited as its increases in current liabilities

So, no impact on total stockholders

6 0

3 years ago