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A. R. Kakhsaz Company
an accountancy corporation
Member
American Institute of
Certified Public Accountants
International associates:
Tavana
& Co.
Chartered Accountants
Toronto, Canada
Tel.416-229-2221
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SMALL BUSINESSES ARE RAISING
PRICES: For the second month in a row small businesses across the U.S. have raised prices
aggressively, passing along their higher costs. Small businesses represent about half the U.S. gross
domestic product. The services sector, for which wages constitute the highest percentage of
costs, is heavily populated by small business. "The past five years have been great, with almost
no inflation, but I think the honeymoon is almost over," says Ken
Bentz, president of a wall and floor covering outfit who recently raised his retail
prices by 4%.
SPECULATE NO MORE. evidently, the only beneficiaries of soaring fuel prices have been the
oil companies. Shell's net income nearly doubled to a record $3.08 billion for the first
quarter 2000. Ask them how? They'd probably respond through cost-cutting efforts!
THE UNITED STATES USES ONE-FOURTH OF THE WORLD'S ENERGY, fossil-fuel based and all.
GOOD NEWS FOR SMALL BUSINESSES FROM IRS: The IRS is now officially allowing small
businesses to retain, adopt, or change to the cash method of accounting even if those
businesses manufacture and sell inventory items. Many such businesses have used the
cash method for a long time and the IRS seldom challenged them. Now the use of cash method
for small businesses with inventoriable items has been officially legitimized.
DESPITE THE TIGHT JOB MARKET, 60% OF NEW and prospective college grads feel finding a job
would be somewhat difficult.
THE UNEXPECTED THANK-YOU CALL FROM THE IRS "just made my day," says a Texas taxpayer
who sent the IRS some information that an agent had requested. He later received the call from
the IRS saying "no further action" was needed.
BMW OF GERMANY REVERSED A BIG MISTAKE: It sold its loss-making British subsidiary, Rover,
for ten British pounds (or $15). And to sweeten the deal BMW promised to throw in a
loan of 500 million pounds! May the Rover go away.
THE AVERAGE CORPORATE DIRECTOR of a small company earned $44,000 in total
compensation in 1999. That figure was about $62,000 for directors at midsize firms and
$83,000 at big companies. |
- EROSION OF CONFIDENCE IN THE EURO: A currency-exchange dealer recently described
the euro as a "toilet currency." The shared currency of 11 European nations has lost 24% of
its value against the dollar since its inception in January 1999. More investors worldwide appear
to prefer to put money in the U.S. than in Europe. The official short-term interest rate in the euro
nations is 3.75% - far less than the 6.5% in the U.S. - making the dollar investments earn higher
returns. The euro is so weak that inflation seems to be more threatening in Europe than in the U.S.
where the strong economy has made the Federal Reserve Board to raise the interest rate by 1.75
percentage points since June of 1999, as the U.S. unemployment rate has now plummeted to
an incredibly low rate of 3.9% - the lowest in 30 years! This time around watch for the European
Central Bank to hike the interest rate and perhaps over-shoot it to both hedge against
inflation as well as trying to bring parity for the euro.
U.S. POVERTY LINE FOR 1999 WAS $17,000 for a family of four and $13,000 for a family of
three.
"CRIMINALS ALL HAVE RIGHTS, WHY NOT PATIENTS?"
That's the slogan being advertised by
the American Medical Association to prod U.S. Congress to act. Here's another one: "How long
does it take for an elephant to give birth and for Congress to pass a patients' bill of rights? Answer to the first: two years. Answer to the second: six years and counting."
A RECORD 1.8 MILLION INDIVIDUAL INCOME- TAX RETURNS reported total income of $200,000 or
more for 1997, up from 1.5 million the prior year. That's 1.5% of all returns filed for 1997.
$4.6 BILLION WORTH OF BRAS ARE SOLD in the U.S. every year. Much of it by Victoria's
Secret.
WHY? Every person and business of financial responsibility and accountability to others,
prepares and publishes at least a balance sheet and an income statement once-a-year. Why
shouldn't the federal, state and local governments?
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WE SEE
MORE IN NUMBERS than just numbers… We see opportunities for you.
WE SEE
MORE IN NUMBERS than just numbers… We see opportunities for you.
Ali R. Kakhsaz, CPA, MAcc
www.arkpca.com
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