When government spending is increased, the amount of the increase in aggregate demand primarily depends on: A. The average propensity to consume B. The size of the multiplier C. Income taxes D. Exchange rates 5. Which fiscal policy would be the most expansionary? A.
Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9. Debt to total assets $7,628,563 / 34,825,498 = 22% 10. Times interest earned 3,272,314 / 121,533 = 26.9 Riordan Manufacturing, Inc. Horizontal Analysis for the Balance Sheet Increase or (Decrease) 2010($) 2009($) Amount % Assets Cash $2,807,029 $1,511,253 $1,295,776* 46.1%* Account Receivables $2,695,342 $2,644,307 $51,035 1.9% Current Portion of Note Receivable $102,976 $117,475 ($14,499) (14.1%) Inventory $8,517,203 $7,123,790 $1,393,413 16.4% Deferred Income Taxes – net $0 $0 $0 0% Pre-Paid Expenses and other Items $402,240 $458,875 ($56,635) (14.1%) Total Current Assets $14,524,790 $11,855,700 $2,669,090 18.4% Liabilities Current Liabilities Current Portion of Long-Term Debt $474,032 $484,894 ($10,862) (2.3%) Accounts Payable $1,391,385 $1,636,923 ($245,538) (17.6%) Accrued
Cui xin yuan Case 11 -1 Polluter Corp Objectives: the appropriate classification in the statement of cash flows for the company’s purchase and sale of Emission allowances Accounting pronouncement: ASC 230 -10 statement of cash flow ASC 350 -30 -25 -3 General Intangibles Other than Goodwill Question 1: What is the appropriate classification in the statement of cash flows for the company’s purchase of Emission Allowances? The recognition of intangibles is defined under ASC 350 -30 -25 -3[Costs of internally developing, maintaining, or restoring intangible assets that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business or nonprofit activity and related to an entity as a whole, shall be recognized as an expense when incurred According to case, Upon receipt of the EAs, the Company recorded the EAs as intangible assets with a cost basis of zero, in accordance with The Federal Energy Regulatory Commission (“FERC”) accounting guidance for EAs. And To meet its need for additional EAs in fiscal years 2010–2014, on April 2, 2010, the Company spent $3 million to purchase EAs with a vintage year of 2012 from Clean Air Corp Acquiring of emission allowances means that Polluter Corp. had to buy allowances from another company. The emission allowances re regarded as tangible assets with zero cost basis. because the Emission and the cost of emission allowances have indetermination lives and inherent in a continuing business , the emission allowance is recognized as expense when incurred.
Calculate the PAYG instalment income and the instalment due to the ATO. Complete the BAS Summary boxes below. Using a general journal format, explain how the payment transaction would be recorded in the accounting system. Supplies you have made Total sales & income & other supplies including capital (GST inclusive) G1 Exports Other GST-free supplies Input taxed sales & income & other supplies ADD G2 + G3 + G4 G1 minus G5 G6 Adjustments (must be total transaction value, i.e. GST inclusive) ADD G6 + G7 Divide G8 by eleven G9 66 191 728 100 G2 G3 Acquisitions you have made Capital acquisitions (GST inclusive) All other acquisitions (GST inclusive) ADD G10 + G11 Acquisitions for making input taxed sales & income & other supplies Acquisitions with no GST in the price Total estimated private use of acquisitions + non-income tax deductible acquisitions ADD G13 + G14 + G15 G7 G8 0 728 100 G12 minus G16 Adjustments (must be total transaction value, i.e.
Formula: 2009 figures – 2008 figures = cash difference (cash diff) Cash diff / 2008 figures = % difference (%diff) net patient 2008 - 418509 2009- 459900 diff cash- 41391 %diff: (41391 /418509) * 100%= 0.098 9.9% (.098901....) other revenue 2008 - 2805 2009- 3082 diff cash- 277 %diff (277/2805) * 100 = 9.9% (0.987522...) total revenues 2008- 421,314 2009 - 462,982 diff cash-41668 % diff 41688/421314 * 100% 9.9%
2010 Current Asset = 145,089 2010 Current Liabilities = 89,435 2011 Current Ratio = 147,800 / 90,283 = 1.637 = 1.64:1 2010 Current Ratio = 145,089 / 89,435 = 1.622 = 1.62:1 Acid-test or quick ratio (Deduct the Prepaid expense & supplies from current asset) 2011 Current Asset is 147,800 minus 2011 Prepaid Expenses & Supplies is 6,267 = 141,533 2011 Current Liabilities = 90,283 2010 Current Asset is 145,089 minus 2010 Prepaid Expenses & Supplies is 5,529 = 139,560 2010 Current Liabilities = 89,435 2011 Acid-test or quick ratio = 141,533 / 90,283 = 1.56 = 1.6 2010 Acid-test or quick ratio = 139,560 / 89,435 = 1.56 = 1.6 Inventory turnover 2011 Revenue = 1,109,295 2011 Operating Income from Continuing Operations = $94,520 2010 Revenue = 969,240 2010 Operating Income from Continuing Operations = $89,199 2011 Inventory turnover = 1,109,295/94,520 = 11.74 2010 Inventory turnover = 969,240/89,199 = 10.87 Profitability Ratios Profit Margin 2010 Net Income= $55,508 2010 Total Operating Expenses= $880,041 2011 Net Income= $59,167 2011 Total Operating Expenses= $1,014,775 2010 Profit Margin = $55,508/$880,041= 6.3% 2011 Profit Margin = $59,167/$1,014,775= 5.8% Return on Stockholders’
Current ratio current asset / current liabilities 1.15 1.32 1.40 Asset Turnover revenue / total assets 1.48 1.43 1.45 Fixed asset turnover revenue / fixed asset 2.12 2.10 2.21 Return on assets net income / total assets 6.72% 5.40% 5.96% Return of equity net income / stockholder equity 12.16% 9.35% 11.10% Debt to equity total debt / total equity 81.04% 73.08%
INTEREST ACCRUAL AND THE TIME VALUE OF MONEY* WALTER C. CLIFF" PHILIP J. LEVINE** * TABLE OF CONTENTS Introduction ................................................ I. The Accrual Method as a Distortion of Income ......... A. The Commissioner's Broad Discretion Under Section 446(b) .................................... B. Use of the Accrual Method for Reporting Interest Deductions on Long-Term Obligations Clearly Reflects Income ............................. 1.
Liabilities and Capital Amounts Percent of net sales Total Liabilities and Capital 2,675,250 100.0 Accounts Payable 96,500 3.6 Sale Tax Payable 3,950 0.14 Payroll Tax Payable 15,840 0.59 Accrued Wages Payable 0 — Unearned Revenue 0 — Short-Term Notes Payable 0 — Short-Terms Loan Payable 0 — Total Current Liabilities 116,290 4.3 Long Term Notes Payable 630,000 23.5 Total Long Term Abilities 630,000 23.5 Total Liabilities 746,290 27.9 Owner Equity 746,290 27.9 Net Profit 1,182,670 44.2 Total capital 1,928,960 72.1 Vertical Analysis of Income Statement Revenue: Gross Sales 10,804,000 1.0 Less: Sales Returns and Allowances 7,800 7.2 Net Sales 10,796,200 100.0 Assets Amounts Percent of net sales Cost of Goods Sold: Beginning Inventory 467,890 4.3 Add: Purchases 3,752,891 34.8 Freight In 165,010 1.5 Direct Labor 3,769,591 34.9 Indirect Expenses 748,539 6.9 Less: Ending Inventory 429,090 4.0 Cost of Goods Sold 8,474,831 78.5 Gross Profit 2,321,369 21.5 Expenses: Advertising 263,000 2.4 Amortization 2,700 2.5 Bad Debts 2,300 2.1 Bank Charges 19,258 .1 Charitable Contributions 5,000 4.6 Bonuses 65,000 .6 Systems & Network Contract 82,000
Explain the meaning of money multiplier and its role? (6) The money multiplier calculates the maximum amount of money that an initial deposit can be expanded to with a given reserve ratio. Money multiplier can also be expressed as a ratio of a change in money supply divided by a change in money base. The role of the multiplier is that it explains why output fluctuates.the money multiplier is a multiple of reserves; this multiple is the reciprocal of the reserve ratio, and it is an economic multiplier.In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve banking system. Most often, it measures the maximum amount of commercial bank money that can be created by a given unit of central bank money.