Question

cooperville’s budget for 2011
cooperville is a country on a far away continent. its president is in charge of
designing the whole budget. she and her advisors are just sitting down to plan
their budget for the year 2011 and they need some help organizing and
reading the information that they have in front of them. you’ve been called in
to help sort out their budgeting mess. these are the facts:

• cooperville is earning $570,000,000,000 in income taxes.
• cooperville is spending $4,303,000,000 on defense.
• cooperville is spending $6,457,000,000 on healthcare.
• cooperville is earning $10,000,000,000 in excise taxes.
• cooperville is spending $500,000,000,000 on social security.
• cooperville is spending $3,000,000,000 on education.
• cooperville is spending $5,430,000,000 on agriculture.
• cooperville is earning $135,000,000,000 in social security.
• cooperville is spending $220,000,000,000 on smaller projects.

complete the following chart, listing
revenues and expenses from greatest
to least:

revenue type	revenue
social security
excise taxes	10,000,000,000
total revenue	715,000,000,000
expense type	expense
social security	$500,000,000,000
smaller projects	220,000,000,000
health care	6,457,000,000
agriculture	5,430,000,000
defense	4,303,000,000
education	3,000,000,000
total expenses	739,187,000,000

calculate. answer the questions below to see where cooperville’s budget stands.

Explanation:

Step1: Verify revenue sorting

First, list all revenues:
Income Taxes: $\$570,000,000,000$
Social Security: $\$135,000,000,000$
Excise Taxes: $\$10,000,000,000$
Sort from greatest to least: $\$570,000,000,000 > \$135,000,000,000 > \$10,000,000,000$
Verify total revenue:
$\$570,000,000,000 + \$135,000,000,000 + \$10,000,000,000 = \$715,000,000,000$

Step2: Verify expense sorting

List all expenses:
Social Security: $\$500,000,000,000$
Smaller Projects: $\$220,000,000,000$
Healthcare: $\$6,457,000,000$
Agriculture: $\$5,430,000,000$
Defense: $\$4,303,000,000$
Education: $\$3,000,000,000$
Sort from greatest to least: $\$500,000,000,000 > \$220,000,000,000 > \$6,457,000,000 > \$5,430,000,000 > \$4,303,000,000 > \$3,000,000,000$
Verify total expenses:
$\$500,000,000,000 + \$220,000,000,000 + \$6,457,000,000 + \$5,430,000,000 + \$4,303,000,000 + \$3,000,000,000 = \$739,187,000,000$

Step3: Calculate budget surplus/deficit

Subtract total revenue from total expenses:
$\$739,187,000,000 - \$715,000,000,000 = \$24,187,000,000$

Answer:

Sorted Revenue Chart (Greatest to Least):

Revenue Type	Revenue
Social Security	$\$135,000,000,000$
Excise Taxes	$\$10,000,000,000$
TOTAL REVENUE	$\$715,000,000,000$

Sorted Expense Chart (Greatest to Least):

Expense Type	Expense
Smaller Projects	$\$220,000,000,000$
Health Care	$\$6,457,000,000$
Agriculture	$\$5,430,000,000$
Defense	$\$4,303,000,000$
Education	$\$3,000,000,000$
TOTAL EXPENSES	$\$739,187,000,000$

Budget Outcome:

Cooperville has a budget deficit of $\$24,187,000,000$