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aivan3 [116]
2 years ago
9

etween 2017 and​ 2018, a small​ businessperson's income increased from​ $200,000 to​ $220,000. The annual state income taxes tha

t she paid increased from ​$5 comma 200 to ​$6 comma 300. What was her marginal state income tax rate in​ 2018? Did this individual experience​ proportional, progressive, or regressive​ taxation? Explain briefly This small​ businessperson's marginal state income tax rate in 2018 was nothing percent
Business
1 answer:
a_sh-v [17]2 years ago
8 0

Answer:

To determine the marginal tax rate that the businessman paid in 2018, we must obtain the percentage that 6,300 represents in a total of 220,000. This is obtained through a cross multiplication:

220,000 = 100

6,300 = X

(6,300 x 100) / 220,000 = X

2.86 = X

As we can see, the tax rate that this businessman had to pay in 2018 was 2.86% of his income.

Now, in 2017, having obtained a profit of $ 200,000, he paid taxes of $ 5,200:

200,000 = 100

5,200 = X

(5,200 x 100) / 200,000 = X

2.6 = X

Therefore, in 2017 he paid taxes for 2.6% of his earnings.

As we can see, his marginal tax rate increased from 2.6% to 2.86% due to higher profits, which is a situation of progressive taxation.

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The following summarized data (amounts in millions) are taken from the September 27, 2014, and September 28, 2013, comparative f
Anarel [89]

Answer:

Apple Inc.

a. Calculate Apple Inc.'s working capital, current ratio, and acid-test ratio at September 27, 2014, and September 28, 2013. (Round your ratio answers to 1 decimal place. Enter "Working capital" in million of dollars.)

September 2014:

a) Working Capital = Current Assets - Current Liabilities

= $45,660,000 - $34,978,000 = $10,682,000

b) Current Ratio = Current Assets / Current Liabilities

= $45,660 / $34,978 = 1.3 : 1

c) Acid-Test Ratio = Current Assets - Inventory / Current Liabilities

= $45,660 - 930 / $34,978 = 1.3 : 1

September 2013:

a) Working Capital = Current Assets - Current Liabilities

= $41,940,000 - $21,160,000 = $20,780,000

b) Current Ratio  = Current Assets / Current Liabilities

= $41,940 / $21,160 = 2 : 1

c) Acid-Test Ratio Current Assets - Inventory / Current Liabilities

= $41,940 -1,200 / $21,160 = 1.9 : 1

b. Calculate Apple's ROE for the years ended September 27, 2014, and September 28, 2013. (Round your answers to 1 decimal place.)

September 2014

ROE = Net Income/Equity x 100 = $26,050/$77,290 x 100 = 33.7%

September 2013

ROE = Net Income/Equity x 100 = $14,160/$48,050 x 100 = 29.5%

c. Calculate Apple's ROI, showing margin and turnover, for the years ended September 27, 2014, and September 28, 2013. (Round "Turnover" answers to 2 decimal places. Round your percentage answers to 1 decimal place.)

September 2014

ROI = Margin x Turnover = Net Operating Income/Sales x Sales/Average Assets

= ($33,950/$108,400) x ($108,400/$120,880)

= 0.31 x 0.90

= 0.279 = 27.9%

Average Assets = $120,880 ($147,820 + 93,940) /2

September 2013

ROI = margin = turnover = Net Operating Income/Sales x Sales/Average Assets

= ($18,530/$65,370) x ($65,370/$70,880)

= 0.28 x 0.92

= 0.258 = 25.8%

Average Assets = $70,880 ($93,940 + 47,820) /2

Explanation:

<h3>Apple Inc. </h3><h3>Income Statement</h3>

For the Fiscal Years Ended September 27 and September 28, respectively:

                                                             2014                2013

Net sales                                           $108,400            $65,370

Costs of sales                                      64,580              39,690

Operating income                               33,950               18,530

Net income                                       $26,050              $14,160

Balance Sheet:

Assets

Current assets:

Cash and cash equivalents                                            $9,580      $10,630

Short-term marketable securities                                   16,280         14,510

Accounts receivable, less allowances of $84 & $99     5,520          5,670

Inventories                                                                           930           1,200

Deferred tax assets                                                          2,170            1,780

Vendor non-trade receivables                                       6,500           4,560

Other current assets                                                      4,680           3,590

Total current assets                                                     45,660          41,940

Long-term marketable securities                               85,770          25,540

Property, plant, and equipment, net                            7,930          22,670

Goodwill                                                                         1,060               890

Acquired intangible assets, net                                   3,690               490

Other assets                                                                  3,710              2,410

Total assets                                                             $147,820        $93,940

Liabilities and Shareholders Equity

Current liabilities:

Accounts payable                                                     $14,780          $12,160

Accrued expenses                                                      9,400             5,870

Deferred revenue                                                       4,250              3,130

Commercial paper                                                      6,548             0

Total current liabilities                                              34,978             21,160

Deferred revenue: noncurrent                                   1,840              1,290

Long-term debt                                                        23,452            17,760

Other noncurrent liabilities                                      10,260             5,680

Total liabilities                                                          70,530           45,890

Shareholders' Equity:

Common stock and additional paid-in capital,$0.00001

par value, 1,900,000 shares authorized; 929,430 & 916,130

shares issued & outstanding, respectively            13,490             10,810

Retained earnings                                                  63,200           37,320

Accumulated other comprehensive income (loss)    600                (-80)

Total shareholders' equity                                     77,290           48,050

Total liabilities & shareholders' equity              $147,820        $ 93,940

At September 29, 2012, total assets were $47,820 and total shareholders' equity was $31,800.

b) Working Capital is the excess of current assets over current liabilities.  It shows the amount of finance needed for meeting day-to-day operations of an entity.  Working capital measures a company's liquidity, operational efficiency, and its short-term financial health.  A healthy entity has some excess of current assets over current liabilities in order to continue to run the business operations in the short-run.  Working capital can also be measured in relative terms with the use of ratios, especially the current ratio and the acid-test ratio.

c) ROE means Return on equity.  It is a financial performance measure calculated by dividing net income by shareholders' equity.   Since shareholders' equity is equal to a company's assets minus its debt, ROE is considered as the return on net assets.  As with return on capital, a ROE measures management's ability to generate income from the equity available to it.

d) Return on Investment (ROI) is a financial performance measure which evaluates the efficiency of an investment or compares the efficiency of a number of different investments.  ROI tries to directly measure the amount of return on a particular investment, relative to the investment's cost.  As a financial metric, it measures the probability of gaining a return from an investment.

6 0
3 years ago
Michael Peters is a middle-aged professional who lost his job five months ago when his former employer downsized. He’s been ac
Lerok [7]

Answer: necessity entrepreneur

Explanation: While an entrepreneur is described as someone who organizes and operates a business venture and assumes much of the associated risks, necessity entrepreneurs only do so out of necessity (the quality or state of being necessary, unavoidable, or absolute requisite). As such, they are individuals ranging from educated persons to street sellers especially in developing countries who create small businesses or enterprises out of the need to survive. In Michael Peters' case, he lost his job due to downsizing which caused him to apply his skills and talents to starting up a business.

6 0
3 years ago
If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new dep
rewona [7]

Answer:

b) decline

Explanation:

If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will <u>decline</u>. This happens because people lost trust and hastily withdrawn their money deposited with the bank.

4 0
3 years ago
Assume all items involve cash unless there is information to the contrary. (a) Purchase of equipment. choose the type of cash fl
VARVARA [1.3K]

Answer: Please see answer in explanatory column

Explanation:Classifying each according to cash flow activity in terms of operating, investing, or financing activity gives

(a) Purchase of equipment.-----investing activity

(b) Sale of building.-----investing activity

(c) Redemption of bonds.-----financing activity

(d) Cash received from sale of goods.  ------investing activity

(e) Payment of dividends.-------financing activity

(f) Issuance of capital stock.  -------financing activity

4 0
3 years ago
Four months ago, you purchased 1,300 shares of lakeside bank stock for $23.32 a share. you have received dividend payments equal
Marina CMI [18]
<span>If I purchased 1,300 shares of lakeside bank stock for $23.32 a share. The total worth of the share is 1, 300 * 23.32 = $30, 316. Okay I received payments dividend worth 0.61 a share; that becomes 0.61 * 23.32 = $14.2252. I sold 1, 300 shares for $24.32. So I sold it for 1, 300 * 24.32 = $31616. My total return = (Amount I sold the share + dividend received) - Amount I bought the share. So we have (31616 + 14.2552) - 30316 = $31630.2552 - $ 30, 316 = $1314.2552</span>
7 0
2 years ago
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