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2 years ago

What is the correct statement about regressive taxation?

Business

1 answer:

Karolina [17]2 years ago

8 0

Answer:

B. The sales tax you pay when you fill your car up with gas is regress

Explanation:

Gasoline tax is regressive because everyone regardless of their income level pay the same amount of tax per gallon of gas purchased. A progressive tax means that people that have higher incomes will pay a higher tax rate, for example, federal income taxes. Every flat tax (same percentage for everyone) is regressive.

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What general conclusions can be drawn about Eli’s situation? Check all that apply.

Alex777 [14]

Answer:

He may still be covered in some cases.

He faces more risk than insured people do.

He may have to take precautions but many factors are beyond his control.

Not being able to afford insurance was a factor in him not being covered.

Explanation:

I got it correct

7 0

3 years ago

Read 2 more answers

It is clear that to produce the maximum material comfort for its citizens, a nation needs to _______.

mariarad [96]

Answer:

(D) Specialize in producing something that it is relatively good at producing.

Explanation:

When a country specialises in production of a good it is relatively good at producing, its citizens will not find it difficult to manufacture the good for local consumption and export.

If the country needs product it is not good at producing it imports it from other countries that have a competitive advantage in producing it.

This will produce maximum material comfort for its citizens.

6 0

3 years ago

Buffalo National Corp. (BNC) is currently an all-equity firm worth $320 million with 50 million common shares outstanding. BNC p

balu736 [363]

Answer:

The solution as per the given problem is provided below throughout the explanation portion below.

Explanation:

The given values are:

Debt issued,

= 120

Pretax earnings,

= 80

Tax,

= 35%

All equity firm,

= $320

Number of common stock,

= 50

(a)

Balance sheet before the debt issue's announcement will be:

Assets  320

Debt  0

Equity  320

then,

The total will be "320".

(b)

The per share price will be:

= $\frac{Equity}{Number \ of \ common \ stock}$

= $\frac{320}{50}$

= $6.40$

or,

After tax, the net income will be:

= $EBIT(1-t)$

= $80(1-0.35)$

= $80\times 0.65$

= $52$

(c)

The return on equity will be:

= $\frac{Net \ income \ after \ taxes}{Value \ of \ equity}$

= $\frac{52}{320}$

= $0.1625$

or,

= $16.25$ (%)

5 0

3 years ago

Home Products, Inc., is planning the introduction of a new food dryer. To compete effectively, the dryer would have to be priced

lys-0071 [83]

Answer:

The Target cost per dryer will be $35 per dryer

Explanation:

First, we need to calculate the required return

Required return = Investment x Required rate of return

Where

Investment = $600,000

Required rate of return = 25%

Placing values in the formula

Required return = $600,000 x 25% = $150,000

Now calculate the return per dryer

Return per dryer = Required return / Expected sale = $150,000 / 30,000 = $5 per dryer

Now use following formula to calculate the target cost per dryer

Return Per dryer = Selling price per dryer - Target cost per dryer

$5 per dryer = $40 per dryer - Target cost per dryer

Target cost per dryer = $40 per dryer - $5 per dryer

Target cost per dryer = $35 per dryer

8 0

3 years ago

Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be

juin [17]

Answer:

IKIBAN INC.

Statement of cash flow using indirect method for

the year ended June 30, 2019

Particulars Amount $

Cash flow from operating activities

Net Income 145,510

Adjustments to reconcile net income to net

cash provided by operating activities

Adjustment for non cash effects

Depreciation 81,600

Gain on sale of equipment -4,300

Change in operating assets & liabilities

Increase in accounts receivable -25,500

Decrease in inventory 34,200

Decrease in prepaid expenses 3,300

Decrease in accounts payable -16,500

Decrease in wages payable -11,300

Decrease in income taxes payable -2,700

Net cash flow from operating activities (A) 204,310

Cash Flow from Investing activities

New equipment purchased -80,600

Equipment sold 12,300

Net cash Flow from Investing activities (B) -68,300

Cash Flow from Financing activities

Cash dividends paid -162,310

($31,000 + $145,510 - $14,200)

Common stock issued 83,000

Notes payable paid -30,000

Net cash Flow from Financing activities (C) -109,310

Net Change in cash = A+B+C $26,700

($204,310 - $68,300 - $109,310)

Beginning cash balance $67,000

Closing cash balance $93,700

5 0

3 years ago