Discussions responses
1) John Halstead
Sandra,
Interesting information! Should individual income taxes be reduced in Colorado? Why or why not?
2) Conrad Loyd
The benefit principle in terms of taxation refers to the people who use the goods and services provided by the government (Hyman, 2014). This means that the people that use goods and services provided by the government are taxed as opposed to the people who do not use. I feel that there are pros and cons about each of the tax structures. If I had to choose one I would choose the proportional tax because it seems to be the fairest. Some examples of proportional taxes would be income and sales taxes.
These two types of taxes are applied at the same rate no matter how much an individual or family earns (Bell, 2016). For example, the sales tax to buy a $2000 pool table will be the same no matter the person's yearly earnings. A person who earns $50000 will be taxed the same income tax as someone who earns $100000. The difference here is that if the income tax is say 10 percent then the first person would be paying $5000 and the second person would pay $10000 in income taxes.
1) Charles Smith
Sandra,
Cash flow from operations is weak and not able to cover the debt. What does Under Armour need to do to improve on their cash flow?
2) Shawn Childers
Facebook, Inc. Cash Flow Ratios: (Industry: Internet Information Provider)
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Year Ending
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2015
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2014
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2013
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Operating Cash Flow/Current Liabilities
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|
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|
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Operating Cash Flow
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$8,599,000
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$5,457,000
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$4,222,000
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Current Liabilities
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1,925,000
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1,424,000
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1,100,000
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Operating Cash Flow to Current Liabilities
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4.47
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3.83
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3.84
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The operating cash flow to current liabilities measures the firm's liquidity and ability to pay short-term debts. The higher the ratio, the better. Facebook slightly declined from 2013 to 2014, and increased in 2015. In 2015 Facebook was able to pay its current liabilities 4.47 times.
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Year Ending
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2015
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2014
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2013
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Operating Cash Flow/Total Debt
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|
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|
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Operating Cash Flow
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$8,599,000
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$5,457,000
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$4,222,000
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Total Debt
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5,189,000
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3,870,000
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2,425,000
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Operating Cash Flow to Total Debt
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1.66
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1.41
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1.74
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The operating cash flow to debt ratio measures the firm's ability to cover all debt with the cash flow from the specified year. The higher the ratio, the better. Facebook declined from 2013 to 2014, and increased from 2014 to 2015, but not to where they stood in 2013. The cash inflow is significant in relation to total debt. In 2015 Facebook was able to cover it's debt 1.66 times, or 166%.
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Year Ending
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2015
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2014
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2013
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Operating Cash Flow per Share
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Operating Cash Flow
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$8,599,000,000
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|
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Less: Redeemable Preferred Dividends
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-
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Operating Cash Flow after Preferred Dividends
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8,599,000,000
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|
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Diluted Weighted Average Common Shares Outstanding
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2,310,000,000
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|
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Operating Cash Flow per Share
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$3.72
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The operating cash flow per share is the available funds er share outstanding. It measures the firm's ability to make expenditure decisions and pay dividends. In 2015, the cash flow per share was $3.72 per share. Differences in this number can vary from year to year based on purchases, such as land and utilities. It is a useful ratio if compared over longer periods. Facebook has one of the highest in the industry of internet information providers, second to Google, Inc.
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Year Ending
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2015
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2014
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2013
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Operating Cash Flow/Cash Dividends
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|
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Operating Cash Flow
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$8,599,000
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$5,457,000
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$4,222,000
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Cash Dividends
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|
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Operating Cash Flow to Cash Dividends
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|
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The operating cash flow to cash dividends measures the firm's ability to cover cash dividends with the specified yearly cash flow. Facebook currently does not pay dividends so they are in no danger of not being able to pay them.