* Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest. The income statement lists 2008 interest paid as $32000, which means that there are other debts that required payments of $24000. If possible, accelerating payback on these loans can be very beneficial in the long run. * At industry average levels, wages of a similar business would be approximately $79000, or $11000 lower. * Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses.
SciTronics’ profit as a percentage of sales in 2008 was 5.7 %. 2. This represented an increase from 3.4 % in 2005. 3. SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg.
This inequality within our nation is the culprit behind America’s insignificant health. “Wealthy Americans make considerably more money than their counterparts in other wealthy countries, while the bottom 10% of our households make considerably less than poor people in Europe or Japan” (Page 228). The breach between America’s poor and rich is causing the overall health to lessen. The wealthy American will spend their money on unnecessary items that they will dissipate; “as private wealth become more concentrated, the quality of public life suffers” (228). Researchers have identified an association between household income inequality and mortality rates.
C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years. Compounded interest allows for more money that simple interest would. 2. A) If the individual retires at the age of 65, having started the program at age 40, there would be $219,318 in the account. $3,000 x (8% in 25 years) 3000 x 73.106 = $219,318 B) If
A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt. Total stockholder’s equity has increased over $600,000 to $22.1 million, which represents a 3% improvement (“University of Phoenix,” 2006). Riordan has made significant strides in paying off debt and reducing liabilities by 12% and increasing stockholder’s equity in these 3 years. These positives continue to make Riordan Manufacturing a valued company to be sought after by investors. Income Statement Analysis Table
Being that these types of assets are From significant parts of savings, this is a logical argument. 1982 to 1989, the Dow Jones Average went from 884 to 2,509 which drastically increased capital assets’ values. There was an impressive drop in the unemployment rate during Reagan’s administration as well. 17 million new jobs were created and the unemployment rate fell from 9.7% to 5.5% by the time Reagan’s presidential term ended (Niskanen & Moore 1996). The hours worked by working aged adults grew during
Jeffrey Ho Bendshadler English 50 1 March 2009 False Sense of Prosperity Due to the booming economy of postwar America during the 1950s and early 1960s, most Americans were living the American dream. “By 1960, per capita income was over $1800, $500 more than it had been in 1945.” (Brinkley, 790). The sales of private homes and automobiles increased dramatically; suburbs expansion grew rapidly; the widespread of technological advances lead many Americans to believe that prosperity was widely distributed. However, most people failed to recognize that more than 20 percent of the nation’s population was living below the poverty line. The population that was living in poverty was virtually hopeless; it was practically
As of 2010, with the total population of the United States at 310.2 million individuals, White Non-Hispanic Americans are 64.7 percent of the United States population. While the second largest racial group in America is Hispanics with 16 percent of the population. According to the trends, the population is estimated to be at about 439 million in the year 2050. That's quite a rise in the population in the next 40 years (129 million) and who knows the impact it will have on our economy and job availability. It is also estimated that White Non-Hispanic Americans will be less than half the population at this point with 46.3 percent of the population being that race.
Forthcoming: Journal of Economic Growth Growth Is Good for the Poor David Dollar Aart Kraay Development Research Group The World Bank First Draft: March 2000 This Draft: March 2002 Abstract: Average incomes of the poorest fifth of society rise proportionately with average incomes. This is a consequence of the strong empirical regularity that the share of income accruing to the bottom quintile does not vary systematically with average income. In this paper we document this empirical regularity in a large sample of 92 countries spanning the past four decades, and show that it holds across regions, time periods, income levels, and growth rates. We next ask whether the factors that explain cross-country differences in growth rates of average incomes have differential effects on the poorest fifth of society. We find that several determinants of growth -- such as good rule of law, openness to international trade, and developed financial markets -- have little systematic effect on the share of income that accrues to the bottom quintile.
Globalization is also the cause of inequality in the worlds economy, considering the fact that globalization has benefited the rich much more than the poor. While poverty rates have fallen as a result of our world becoming globalized, the workers are still getting an incredibly low income, which might cause social instability and conflict. Globalization has had a positive impact. One of the main advantages is that based on per capita GDP