In your post, name the three types of tax rate structures, explain in your own words the benefits and shortcomings of each, and give an example of each.
Congress has chosen to exempt certain income from taxation, such as scholarships, gifts, life insurance proceeds, municipal bond interest, and employee fringe benefits. Given that one of the primary purposes of Congress is to raise revenue for the government, explain in your post why you think Congress would provide these and other exemptions.
You may make relevant adjustments to the format as required. Where an item of receipt is not brought to tax (or conversely an item of expense / relief is not claimed for deduction), please insert “0” (zero) in the tax computation and state the reasons – e.g. not taxable as
(26 points) (A 1½ -page response is required.)
State three (3) reasons why budgeting is an essential part of a business plan.
Discuss how financial statement information, including ratio analysis, would assist an Open MRI Clinic in its business planning.
Discuss the significance of breakeven analysis to business planning.
S. It does this by using its three major policy tools, open market operations to change the Federal Funds rate, reserve requirement changes, and discount rate changes, to bring about favorable changes in the economy.The main policy-making body in the Fed is the Federal Open Market Committee (FOMC). Your task in this assignment is to review recent monetary policy decisions undertaken by the FOMC and to write a brief report where you answer the questions shown below.
Instructions to Part I: The Supply of Money First, look at what the Fed ultimately attempts to control with its policy actions: the supply of money, as measured by M2. Generally, the faster the money supply grows, the faster the economy grows and vice-versa. Go to the Federal Reserve of St. Louis’s Web site http://www.stlouisfed.org/ Click on RESEARCH and Data in the row near the top. Then scroll on FRED – Economic Data and click on Category. Click on Monetary Data under Money, Banking and Finance. Click on M2 and Components. M2 contains all the components of M1 (Cash, check-able deposits and travelers’ checks) plus some additional items.
Questions for Part I 1. The list on the screen identifies the items that are added to M1 to get M2. (The items are repeated for different dates and for SA and NSA. SA stands for seasonally adjusted, NSA stands for not seasonally adjusted. Also, some of the items are totals of some of the others.) List 2 of these items that are included in M2.Now click on M2 Money Stock, Weekly Not Seasonally Adjusted link Once on the chart download the data into excel. Scroll down to the latest value.
2. What is the latest value for M2? How much has it changed over the last 10 years?
Instructions to Part II: FOMC Policy Decisions The FOMC meets on a regular basis to decide what actions they wish to take. Many times, they decide to do nothing, but other times they wish to either slow down the economy or speed it up.To find out what the FOMC has recently done, go to the main Fed Web site at http://www.federalreserve.gov and click on Monetary Policy and then click on the Federal Open Market Committee link and then on Meetings calendar, and information. Click on the most recent statement on the calendar (most recent calendar date). Please pay attention to the ordering of the meetings. Print the page to include in your report. Click the Back button on your browser and click on the next to last Statement link Print this page to include in your report?
Question for Part II 1.Describe the actions taken (if any) by the FOMC as reported in each statement. Explain the reasoning behind the FOMC’s actions (or lack thereof) as reported in each statement. What effects do you think the FOMC’s policy decisions will have on M2? What is the Fed attempting to do with their policy actions?
Instructions for Part III: Monetary Policy and the Fed Funds RateAlmost always when the FOMC makes a policy change, it attempts to either increase or decrease the Fed Funds rate. An increase raises the cost of bank funds which leads to a reduction in lending and, ultimately, the money supply. In addition, an increase in the Fed Funds rate usually leads to an increase in other interest rates. The effect is to slow down the economy to reduce the threat of inflation. Exactly the opposite occurs when the Fed lowers the Fed Funds rate.To check on recent changes in the Fed Funds Rate go to http://www.economagic.com Under U.S. Government Federal Reserve Board of Governors, click on Interest Rates. Under U.S. Monthly Interest Rate Data, click on Federal Funds. On the second menu bar (green and black), click on Gif Chart. Right click on the chart and choose Print Picture to print the chart to include with your report. Or, if you have a graphics viewer, you can choose to Save Picture As to save a copy in a folder for later printing.
Questions for Part III1. The Fed Funds rate should reflect the recent FOMC policy actions you discovered earlier (either up, down or steady). What does the chart tell you about past FOMC monetary policy decisions during the time period shown?Finally, click the Back button on your browser twice to return to the U.S. Monthly Interest Rate Data section. Scroll down to the 3-Month Treasury Bill Rate, Secondary Market link and click on it. Bring up a gif chart as you did with the Fed Funds rate. Right click on it and either print it or save it to include in your report. 2. Is there any evidence that Fed policy can affect interest rates other than the Fed Funds Rate? Explain
Complete the shaded areas on the Projected Income Statement and Cash Flows tab using only the data/information provided in the (a) case study; (b) the outside analyst’s projections for 1986; and, (c) the publisher’s assumption’s tab/sheet. Do you agree with the outside analyst’s analysis of 1986 projections? Explain what you would do differently (if anything). How does Residual Cash Flow (RCF) differ from Free Cash Flow (FCF)? How would your model change if you were to calculate Alfin’s FCF?
2. Complete the shaded areas on the Projected Balance Sheet tab (using the same data identified above). Does Alfin require funding during the projection period? If so, how much (by year and in total) and how do you suggest they acquire the funds?
3. Complete the WACC tab by providing the necessary calculates that support your estimate of Alfin’s WACC (remember that Alfin’s cost of equity is 16% per the data provided in the Publisher assumptions).
4. Complete the shaded areas on the Valuation Model tab (using all the data above). What is your per share estimate of the intrinsic value of Alfin’s common shares? How would you change this model if FCF were calculated and used?
5. Based on your valuation model and assuming your cash flow projections are correct, what long-term sustainable growth rate (“g”) is necessary to reach the $67.25 common share price observed in the stock market? What are your thoughts of this analysis? Is it realistic? Document how you would support your conclusion.
Figure Ginger gift tax.
Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Ginger’s gift tax liability for 2019 if she and Greg elect gift splitting and Greg gave their son Stevie stock valued at $80,000 during 2019. Ginger’s grandmother Mamie died November 12, 2018, and Mamie’s will bequeathed $250,000 to Ginger. On March 4, 2019,Ginger irrevocably disclaimed the $250,000 in writing, and, as a result, the property passed instead to Ginger’s sister Gertie. In 2019, Ginger gave $100,000 cash to her alma mater, State University. In 1996, Ginger gave ownership of a life insurance policy on her own life to her daughter, Denise, and in 2019 Ginger paid the $22,000 annual premium on the policy. In 2018, Ginger deposited $45,000 into a bank account in the name of herself and son Stevie, joint tenants with rights of survivorship. Stevie deposited nothing. Neither party made a withdrawal until 2019, when Stevie withdrew $30,000. In 2019, Ginger created a trust with County Bank as trustee and transferred $300,000 of stock to the irrevocable trust. She named her husband Greg (age 47) to receive all the trust income semi-annually for life and daughter Drucilla to receive the remainder. In 2019, she gave a remainder interest in her beach cottage to the American Red Cross and kept the right to use the cottage rent free for the rest of her life. The fair market value of the cottage was $70,000.
Other information: Ginger’s earlier taxable gifts are $175,000, all made in 1996. Ginger will make whatever elections are necessary to minimize her current gift tax liability. Assume the Sec. 7520 interest rate is 4%.
You will also need to use filtering and sorting.
Aside from just describing the analysis, discuss your interpretation of the data. You may include images from your analysis in the report, but images should not constitute the majority of the report. If you use a table or image, you must spend some time discussing it within the body of the text. A good rule of thumb is at least a paragraph of text to describe each image.
Inventory management in corporations identifies management’s practices, investigate efficient and effective inventory management approaches, and efficient and effective inventory management practices, which are key points for an auditor to ensure evidence for an opinion in the audit report on inventory.
Imagine that you are an auditor of a corporation in KSA and answer the following:
Bring out the inventory management process you would follow to check efficient and effective inventory management practices in the corporation.
List done the important functions with examples in the inventory management process.
Explain the audit tests you would cover with related assertions to get assured evidence
Conclude your testing on likely and tolerable misstatements allocated to the inventory account
Q2. What control purposes and management assertions are supported by bank reconciliations? (1 Mark)
Distinguish between Net Present Value and Internal Rate of Return.Give one pro and one con for each method.[15 marks]
Q2. Describe one advantage and one disadvantage for the following pricing methods:market-based and cost- based[15 marks]
Q3. The Coffee Revolution sells beverages in a variety of coffee flavors.Data for a recent week appear below:
Revenue (1,000 cups sold)
Cost of ingredientsSAR640
Depreciation expense –office3601,500
a.Suppose the company’s policy is to set prices based on a 250% markup above variable cost.Calculate the cost-based price per cup. [15 marks]
b.What is the mark up percentage if the company adopts product cost method and the required rate of return by shareholders is 10% on total assets of SAR 10,000[15 marks]
Q4. The City of Hail is considering the purchase of new road repair equipment costing SAR40,000 to achieve cash savings of SAR8,000 per year in operating costs.The estimated useful life is 10 years, with no terminal value.The city’s minimum expected return is 14%.
a.What is the net present value of this investment?[10 marks]
b.What is the internal rate of return? [10 marks]
d.What is the payback period?[10 marks]
Q5. Part A is used in one of Oraby Corporation’s products. The company’s Accounting Department reports the following costs of producing the 12,000 units of the part that are needed every year.
Direct materialsSAR 4.50
Direct laborSAR 1.20
Variable overheadSAR 2.70
Supervisor’s salarySAR 3.00
Depreciation of special equipmentSAR 2.30
Allocated general overheadSAR 1.80
An outside supplier has offered to make the part and sell it to the company for SAR 15.70 each. If this offer is accepted, the supervisor’s salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier’s offer were accepted, only SAR 5,000 of these allocated general overhead costs would be avoided.
a. Prepare a report that shows the effect on the company’s total net operating income of buying part A from the supplier rather than continuing to make it inside the company. [30 marks]
b. Which alternative should the company choose? [10 marks]