Imports are greater than exports, and so the net effect of trade is a deficit and its net export it –3% The government spending is 19% because state and local governments can't spend more during a recession. They are usually mandated to balance their budgets, and so must cut spending when tax revenues
Municipal bonds had traditionally been considered an effective investment vehicle for property casualty insurance companies and for individuals in high federal tax brackets. For that reason, face value yields on muni bonds are generally below those of Treasuries given the net premium after-tax considerations. At the time of the case, the top marginal federal income tax rate was over 50% (not including state and local taxes). In the years leading up to the case, both interest rates and the marginal tax rate had been very volatile. The top marginal tax rate at the time the portfolio had been purchased was 70%, it then fell to 50% and was scheduled to drop further in the coming years.
First problem we encountered were the current and quick ratios were unusually high due to the amount of cash, receivables and short term investments that Krispy Kreme held. This is an indication that the company was not investing in other projects and remained conservative with regards to the treatment of current assets from 2001 to 2004. The net sales, receivables and inventory turnover were much lower compared to the industry, but ultimately the profit margin and return on equity remained consistent which we considered questionable. The leverage ratios were lower than the industry; the company used debt to make payments and took a line of credit. Although cash reserves were high and debt was very low, the cash ratio was lower
Though another way of looking at it is that Apple is only waiting for the really good investments, and that opportunity offset the lost revenue of hoarding cash at a low interest rate. Stockpiling cash increases grumbles from stakeholders for dividend or share buy backs. Apple’s war chest has grown faster than even the loftiest projections, and for Apple’s CEO Tim Cock more money brings more problems. Approximately 64% of Apple’s cash is overseas, which induce the issue of hefty tax to bring in into the United States . An Apple share of stock is merely a claim on a portion of their future cash flow.
In the same time, the bank of Japan (BoJ) kept its interest rate close to zero. But expectations are not very confident for the USD. In fact, high interest rate leads to an increase in the currency which attracts FDI but it hurts exports. In 2005, the US current account deficit was heading towards USD 800 billion. With such a deficit, the US won’t be able to sustain a strong USD.
This national debt has continued to increase an average $3.92 billion per day since September 28, 2007. Based off of the assigned video, plethora amounts of people dislike big governments because of taxes; this includes income tax, Medicare, tariffs and international trades. The government has two types of spending, Mandatory and Discretionary spending. Mandatory spending goes towards entitlement programs, social security and interest payments the government has to make. Discretionary spending is at the discretion of the Congress, where the money can be divided up into however they want.
Operating income moved along the same path for the period albeit at a lower rate. The company’s invest ment in its self-insurance fund and interest income contributed significantly to the difference between operating income and net income. Revenue fell off by 12% in 2009 however; it increased by 22% in 2010. The company was able to increase it domestic and commercial rate after an application was made to the Fair Trading Commission. Fuel expenses grew at a faster rate than sales, fuel costs although seeing a fall off in 2009 by 20.52% rose by 29% in 2010.
The United State’s international status as a world superpower is typically associated with a thriving economy, and while American business is expanding, there exists a bubble of uncertainty which surrounds the future of retirees. Present day American retirees tend to rely on financial systems such as Social Security, pensions, and a 401(k) plan to fund their retirement. However, in today’s economy, the increasing number of retirees, coupled with a steady number of workers, has began a trend of deficit spending by the Social Security system. Furthermore, the increasing deficits of state legislatures owed to participants of pension plans present the issue of how to both reverse the current trend, while simultaneously continuing to provide for
1.What is the impact of the December 1993 shipments of conventional lenses to Bausch and Lomb 1993 financial statements? Is the impact significant? The impact was:- i)Increased revenue by $22M ii)Reduced inventory by 1.8 million pair. Based on the COGS of 45%, this could mean a reduction in inventory of close to $10M. iii)There is very little increase in SG&A as not much was spend in terms of sales effort.
In the five years before the ban, the murder rate fell from 37 to 27 murders per 100,000 people. In the five years after it went into effect, the rate rose back up to 35.” (Lott, Making Guns Less Available Does Not Reduce Gun Violence, 2011). The same situation also happened in Chicago. “Chicago has banned all handguns since 1982. But that handgun ban didn't work at all when it came to reducing violence.