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Income Distribution

Gone public (overstated or understated)

Name a firm that has recently (within 1 year) reported publicly that it either overstated or understated its earnings or profits. (for a recent quarter or annual period). What effects do you think the "over or under stated " earnings (profits) will have on the firm?

Branch office

Outdoor Sports Company, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45% chance of occurring, Outdoor can expect to earn a net income in that branch office of $50,000. If there is a mini-recession, which has a 25% chance of occurring, Outdoor

Inventory and cost of goods

During 2003, A Company and Z Company made the following identical purchases in the order shown: 100 units @ $10.00 each 200 units @ $10.50 each 200 units @ $11.50 each 100 units @ $12.00 each Each company sold 400 units but A Company uses LIFO inventory costing and Z Company uses FIFO inventory costing. Assume there was

Plank's Plants : Sustainable Growth Rate

17. Plank's Plants had net income of $2,000 on sales of $50,000 last year. The firm paid a dividend of $500. Total assets were $100,000, of which $40,000 was financed by debt. a. What is the firm's sustainable growth rate? b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? c. W

Monopolist point of view and a Pure Competition point of view

--- Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two firms in the long run equilibrium with respect to the following: a) Price charged b) Output produced c) Profits d) Allocation of resources e) Impact on income distribution

GROUP'S SHARE of Income Taxes

Latest Data available is for the year 2003 1. What is the Groups Share of and the Income Split Point for Individual Income Taxes as of 2003 for the following group of income earners: GROUP'S SHARE of Income Taxes INCOME SPLIT POINT Top 1% of income earners

5. Average daily balance, average monthly balance

Suppose that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account on the first day of the month, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero. What is your average daily money balance for the month? H

GDP versus GNP

What is the difference between gross domestic product (GDP) and gross national product (GNP)?

Financial Statement Analysis/Accounting

On December 31, 2004, Acquire Company acquired Target Company. Acquire issued $5,000,000 in stock in exchange for 85% of the outstanding shares of Target. The acquisition was treated as a purchase. The historical cost balance sheets of Acquire and Target prior to the acquisition are given below. Please see attached.

GDP Problems

Answer the following questions based on the following data...GDP totals? GNP totals? Net domestic product is? National Income Totals? (See attachment for full question)


Inventory on Dec 31,2004 is understated by 66,000 inventory on dec 31, 2005 is overstated by 30,000 year sold 2004 2005 2006 a.cost of good 715,000 847000 770000 income 220,000 275000 231000 current assets 1,15,000 1,265,

Personal distribution of income--what is the trend?

Visit the U.S. Census Bureau website at www.census.vov/hhes/income/midclass/index.html and select Data Highlights. Since 1969, how has the share of aggregate household income received by the lowest and highest income income quintiles (fifths) changes. Make a summary and sound conclusion.