Using the Following Financial Data Given Below,fill in the Appropriate

question 8

Essay

Using the following financial data given below,fill in the appropriate ratios in the table provided. $$\begin{array} { l r l r } \text { ASSETS: } & & { \text { LIABILITIES \& STOCKHOLDERS EQUTTY: } } \\\text { Cash } & \$ 2,250 & \text { Current liabilities } & 4,500 \\\text { Accounts Rec. } & 4,125 & \text { Long-term debt } & 2,250 \\\text { Inventory } & 1,875 & \text { Common stock at par } & 1,500 \\\text { Fixed Assets } & 9,000 & \text { Paid in capital in excess of par } & 3,000 \\\text { Total Assets } & \$ 17,250 & \text { Retained earnings } & 6,000 \\& & & \\& & \text { Total Liabilities \& } & \$ 17,250 \\& & \text { Stockholder Equity } &\end{array}$$ $\begin{array}{c}\begin{array}{lll} \text {Income before fixed charges and taxes}\\ \text {Interest payments}\\ \text {Lease payments}\\ \text {Taxes ( \( 45 \% \) tax rate)}\\ \text {Net income after taxes}\end{array}\begin{array}{r}\$ 9,000 \\1,125 \\1,350 \\\underline{2,936} \\ \$ 3,589\end{array}\end{array}$

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Definitions:

Rationally Ignorant

A state where the cost of educating oneself on an issue exceeds the potential benefit that the knowledge would provide.

Public Choice Perspective

A theoretical framework that applies economic principles to political processes, viewing government actions and decisions through the lens of economic efficiency and individual self-interest.

City Budget

An annual financial plan outlining expected revenues and expenditures for a city’s operations and capital projects.

Fiscal Policy

Governmental decisions on taxation and spending policies aimed at influencing the national economy's performance.