Earnings in the business to finance future expansion

Assignment Help Business Economics

Reference no: EM131004646

Tina is the sole owner of Tina's Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's equipment depreciates in value by $125,000. TLM pays $600,000 to its workers, who pay $140,000 in taxes on this income. TLM pays $50,000 in corporate income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in the business to finance future expansion. How much does this economic activity contribute to each of the following?

a. GDP

b.NNP

c. National Income

d. Compensation of employees

e. Proprietors' income

f. Corporate profits

g. Personal income

h. Disposable personal income

Reference no: EM131004646

Questions Cloud

Considering selling several units of homogeneous product : A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 60 - 0.25P, and the marginal cost of production is $80. Determine the optimal number of units to put in ..

If the expected path of interest rates on one-year bonds : If the expected path of interest rates on one-year bonds over the next five years is 2%, 4%, 3%, 2%, and 1%, the expectation theory predicts that the bond with the lowest interest rate today is the one with a maturity of a) one year b) two years c) t..

If supply of apples decreases and demand or apples increases : If supply of apples decreases and demand or apples increases, then the equilibrium

Cell phone market as technology improvements bring cost down : What will happen in the cell phone market as technology improvements bring cost down?

Earnings in the business to finance future expansion : Tina is the sole owner of Tina's Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's equipment depreciates in value by $125,000. TLM pays $600,000 to its workers, who pay $140,000 in taxes on..

Changes in the prices of food-clothing and medical care : According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..

The governor is attacking the new traffic rules : The governor is attacking the new traffic rules. His views are wrong because he was given a speeding ticket last week.

Most effective way a firm can be competitive over time : The issue of competition over time presents a number of problems for a firm. Based on research for this question and personal experience, what do you believe is the most effective way a firm can compete over time? Your answer should address some of t..

What is the required quarterly deposit : Your company must make a $750,000 balloon payment on a lease 2 years and 9 months from today. You have been directed to deposit an amount of money quarterly, beginning today, to provide for the $750,000 payment. The account pays 8% per year, compound..

User Account

All Pages