[ 12 ]. US Bureau of Labour Statistics. The Recession of 2007-2009. February 2012. [ 13 ].
The Fiscal Cliff Allison Stewart, Khristy Parham, Ronnie Adger, Steve Fincher ECON 2003 Mr. Alfred Bundrick January 8, 2013 The phrase “Fiscal Cliff” has been in the news for months but many U.S. citizens are not sure what this means or how it will affect them. With the president and both parties of congress blaming the opposing party for the economic situation that the nation now finds itself in, it is understandable that people are confused. However, the fiscal cliff is a real danger to an already weak U.S. economy and if not handled properly, could send the nation spiraling into a deep recession. To understand the economic conundrum the nation is facing the term Fiscal Cliff must be defined and, if allowed to occur, what impact will
Other Expenses and Losses | | | | Interest expense | | | 18,000 | | | | | Income before income tax | | | 323,525 | Income tax | | | 102,000 | Net income | | | $221,525 | Earnings per common share [($221,525 – $9,000) ÷ 80,000] | | | $2.66* | *Rounded TWAIN CORPORATION | Retained Earnings Statement | For the Year Ended June 30, 2014 | Retained earnings, July 1, 2013, as reported | | | $337,000 | Correction of depreciation understatement, net of tax | | | (17,700) | Retained earnings, July 1, 2013, as adjusted | | | 319,300 | Add: Net income | | | 221,525 | | | | 540,825 | Less: | | | | Dividends declared on preferred stock | | $ 9,000 | | Dividends declared on common stock | | 37,000 | 46,000 | Retained earnings, June 30, 2014 | | | $494,825 | PROBLEM 4-4 (Continued) (b) TWAIN CORPORATION | Income Statement | For the Year Ended June 30, 2014 | Revenues | | | Net sales | | $1,485,050 | Dividend revenue | | 38,000 | Total revenues | | 1,523,050 | Expenses | |
Peter Ferrara states that the “government’s own reports show that Medicare will run out of funds to pay promised benefits within the next few years”. Ferrara also says “that the current source of funding for Medicare will finance approximately one third of currently promised benefits to today’s workers”. Radical measures are definitely needed to preserve the Medicare program (Ferrara, 1997). The United States is facing a severe financial crisis because of the huge spending deficits and future spending for Medicare. The baby boom population of 79 million has started enrolling in Medicare in January 2010 and for the next 20 years an average of 10,000 citizens per day will reach the age of 65 (Smith,
This suggest that for every $1 that the company earns in Sales, they paid 23.1 cents for their employee. The fact that Country Road has decreased the percentage means that they became more efficient in paying their employee over the years. (c) Judging from the Vertical Analysis, Country Road might have been opening new stores , thus increasing Occupancy Expense. By doing this they have to save more money, cutting cost which led to decrease in Employment Expense, cutting their employee’s wages. ??
The author of this article, Jeannine Aversa, is stating that key economic indicators point to the likelihood of a recession. Aversa supports her thoughts by noting the real GDP; “crawled at a 1.3 percent pace in the opening quarter of 2007…even weaker than the sluggish 2.5 percent rate in the closing quarter of last year.” The author suggests the main cause of the economic slowdown is due to “the housing slump.” Consumer expenditures are driving the economy, but Aversa worries about a “fallout from risky mortgages and rising energy prices.” Uncertainty of the Feds actions concerning the interest rates is leading to lower investment spending. The author also states that the Feds decision on raising or lowering the interest is due to the
1anticipating a Bush tax cut, managed to push some income from the end of 2000 into 2001. 2Although most wage earners can't control when they get paid, delaying a sizable bonus to January from December, for instance, would make a big difference in tax liabilities if a tax cut is retroactive to the beginning of the year. 3and, most recently, at the most recent presidential transfer of power. There was a surge in receipts at the end of the year in 1992. Known as the "Clinton effect," the jump was attributed to fears that Mr. Clinton would, as he did, raise taxes.
Now “it is presently early January 2015”; therefore, by exam MCF’s draft copy of statement of earnings for 2014, we can find that if MCF really experienced economic hardship. First of all, we will analyze the statement of earnings gross profit part: Year Ended Dec 31 | 2014 | Change | 2013 | Change | 2012 | Revenue | 2,088 | 102% | 1,036 | 94% | 534 | Cost of Goods Sold | 1,285 | 110% | 611 | 91% | 320 | Gross Profit | 803 | 89% | 425 | 99% | 214 | | | | | | | Selling General and Administrative | 612 | 903% | 61 | 74% | 35
By doing this the unemployment rate slowed from 6.32 percent to 4.41 percent. There was also a need to look at our education budget. It need to be increased, so I choose to raise income taxes from zero percent to .50 percent adding over 100 million dollars to the country’s revenue. This increased our total real GDP to $41.27, it was formerly
However, this annual "surplus" is expected to change to a deficit around 2015, when payments begin to exceed receipts and interest thereafter. The fiscal pressures are due to demographic trends, where the number of workers paying into the program continues declining relative to those receiving benefits. The number of workers paying into the program was 5.1 per retiree in 1960; this declined to 3.3 in 2007 and is projected to decline to 2.1 by 2035.Further, life expectancy continues to increase, meaning retirees collect benefits longer. Federal Reserve Chairman Bernanke has indicated that the aging of the population is a long-term trend, rather than a proverbial "pig moving through the python.” The accumulated surpluses are invested in special non-marketable Treasury securities (treasuries) issued by the U.S. government, which are deposited in the Social Security Trust Fund. At the end of 2009, the Trust Fund stood at $2.5 trillion.