Song earns $110,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i. e., $22,000 of tax). answer the questions below assuming that congress increases the income tax rate such that song's average tax rate increases from 20 percent to 25 percent. what will happen to the government’s tax revenues if song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and therefore earns only $82,500 in taxable income?

Explanation:

Previously the government was earning 22000 in tax revenue but since it increased the tax rate to 25%, Song taxable income went down to $82500. Therefore now government tax revenue is

25% of 82500 = 20625

So government tax revenue decreased by 1375 ( 22000-20625)

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

government control and resources