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You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. 2000 1,088 New businesses 2018 1,162 Business failures State income tax receipts ($ millions) College student enrollment 627 191.7 520 162.6 242,119 290,841 State sales tax ($ millions) 41.6 39.9 Click here for the Excel Data File The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) Leading economic indicator c. Interpret the indexes. (Round your answer to 2 decimal places.) Economic activity has decreased % between 2000 and the 2018.

You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. 2000 1,088 New businesses 2018 1,162 Business failures State income tax receipts ($ millions) College student enrollment 627 191.7 520 162.6 242,119 290,841 State sales tax ($ millions) 41.6 39.9 Click here for the Excel Data File The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) Leading economic indicator c. Interpret the indexes. (Round your answer to 2 decimal places.) Economic activity has decreased % between 2000 and the 2018.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answre must be in table format or i will give down vote 

 

You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. 2000 1,088 New businesses 2018 1,162 Business failures State income tax receipts ($ millions) College student enrollment 627 191.7 520 162.6 242,119 290,841 State sales tax ($ millions) 41.6 39.9 Click here for the Excel Data File The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) Leading economic indicator c. Interpret the indexes. (Round your answer to 2 decimal places.) Economic activity has decreased % between 2000 and the 2018.
Transcribed Image Text:You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. 2000 1,088 New businesses 2018 1,162 Business failures State income tax receipts ($ millions) College student enrollment 627 191.7 520 162.6 242,119 290,841 State sales tax ($ millions) 41.6 39.9 Click here for the Excel Data File The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) Leading economic indicator c. Interpret the indexes. (Round your answer to 2 decimal places.) Economic activity has decreased % between 2000 and the 2018.
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