Prepare a 1-page discussion paper discussing the differences between the two methods and how costs are characterized in each method. What is your preference and why?

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Discussion paper

Managers must understand how costs are classified, how changes in volume affect costs and how changes in prices affect volume. In general, costs are classified as fixed, variable, and mixed.

Prepare a 1-page discussion paper discussing the differences between the two methods and how costs are characterized in each method. What is your preference and why?

Construct a balance sheet for 2016 and 2017. List all the working capital accounts. Find the net working capital for the years ending 2016 and 2017. Calculate the change in net working capital for the year 2017.

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Financial management questions that require Accounting and Financial Management knowledge.

1. Balance sheet. From the following balance sheet accounts,

  • a. Construct a balance sheet for 2016 and 2017.
  • b. List all the working capital accounts.
  • c. Find the net working capital for the years ending 2016 and 2017.
  • d. Calculate the change in net working capital for the year 2017.

2. Income statement. From the following income statement accounts,

  • a. Produce the income statement for the year.
  • b. Produce the operating cash flow for the year.

Determine proper account classifications prior to recording journal entries that will appear on your employer’s books and affect the content of its year-end audited financial statements.

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Scenarios

1. Indicate if independence is require( 115, tant to perform the following tasks iv:

  • a. – Render tax advice to a nonaudit diet
  • b. Issue an audit opinion concerning a government-run airport
  • c. Issue a review opinion concerning quarterly reports of a privately held company
  • d. Make recommendations as an internal auditor to  your employer
  • e. Determine proper account classifications prior to recording journal entries that will appear on your employer’s books and affect the content of its year-end audited financial statements.
  • f. Issue an audit opinion concerning the financial statements of an employer-funded pension plan
  • g. Provide litigation-related advice to a nonaudit client

Analyze and Record Transaction.. merchandise Purchases and Sales Using Analyze Perpetual Inventory System. Analyze and Record Transactions for merchandise Purchases and Sales Using the Perloac Inventory System.

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Accounting excel

This assignment will derrionst.e the following leaming objectives.

Analyze and Record Transaction.. merchandise Purchases and Sales Using Analyze Perpetual Inventory System.

Analyze and Record Transactions for merchandise Purchases and Sales Using the Perloac Inventory System.

Record the following transactions using the perpetual anti tunedit inventory system (50 Points)

Calculate LS’s business taxable income for year 2022. What is Max’s 2022 tax liability assuming Max files as a single for 2022. Ignore any potential tax credits, self-employment, or employment taxes

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Excel in company analytic.

Max opened Learning Smart (LS) as a sole proprietorship, providing online education to school–age kids, specializing in art and STEM. Business has been booming since started. In 2022, he provided the following financial information relating to his business. LS is using accrual method of accounting.

Financial Information:
a. During the year, LS sold 15,000 learning hours for $450,000.

b. In April 2022, LS acquired new computers and online teaching accessories in the amount of $25,000 to be used in the business. LS intends to take §179 expenses.

c. A franchised learning center (Komon) contracted with LS to offer customized classes. Komon paid LS $150,000 ($25 per learning hour) on June 30 th as a prepayment for LS to provide 500 hours per month from July 1st , 2022 to June 30 th 2023. LS elects to use the deferral method to account for the transaction.

d. In June, Max travelled to an education conference held in Boston, MA. Max felt it was a great opportunity to learn current trends and gain potential cooperation opportunities with school districts and large training centers. The conference was for two days. Max paid $800 round–trip airfare, $250 for conference registration fees, $150 per night for lodging, $96 for cab fare, and $80 per day for meals at restaurants during the trip.

e. At the end of the year, Max estimated that 5 percent of the year–end receivable $86,000 is not collectible, but it has not been able to specifically identify any accounts to write off.

f. LS’s cost of goods sold is mainly the instructor hours. Due to the expansion of the business, Max hired three full–time instructors to work for LS and paid them each $60,000 annual salaries. To encourage retention, LS accrued $15,000 bonuses for each instructor at year–end. The bonus was paid on March 1, 2023.

g. Max also hired his teenager son to work part–time doing administrative work for the business. He paid his son $30 per hour for 250 hours. However, the market hourly rate for similar type of work is $15 per hour.

h. On July 1 st , LS moved out of Max’s basement and rented a new office in city center plaza. LS signed a contract for a two year lease with monthly rent of $2,000. When signing the lease, LS paid $4,000 for the first and last month rent deposits as well as $5,000 for safety deposit.

i. LS purchased new office furniture and fixtures for the new office in the amount of $11,000, intend to take §179 expensing.

j. In June, LS purchased a patent for an online interactive platform for $45,000. This patent expires in 10 years.

k. On July 1 st , LS purchased and paid for a 12–month insurance policy that covers its business property. The policy costs $4,800.

l. LS paid utility expenses of $3,000.

m. Early January, before Max launched his business, he spent $9,000 investigating different business models and opportunities. Max considered this as a start–up cost.

n. After receiving the prepayment from Komon, LS invested in different investment portfolios. At the end of the year, LS received $1,500 interest from a municipal bond and $2,500 from corporate bond.

o. In November, LS signed a one–year contract with an advertising company to produce an ad campaign. LS paid $4,200 up–front and LS will paid additional $2,000 if sales increase by 20% after six months period.

p. Max spent a lot of time visiting clients during the first half of the year (January to June) to develop his business. Max visited clients driving his personal car. He drove a total of 3,000 miles for client visits. He also received $80 parking tickets. LS reimbursed his business mileage and parking tickets.

q. While visiting clients, sometimes Max invited clients to NBA games or to shows, incurred a total costs of $6,500.

Required:
1. Calculate LS’s business taxable income for year 2022 (17 points).
2. What is Max’s 2022 tax liability assuming Max files as a single for 2022. Ignore any potential tax credits, self–employment, or employment taxes (2 points)
3. What are Max’s federal tax return filing deadline and payment deadline for 2022 taxes (2 points)?

4. What is Max’s:

  • a. Average tax rate (3 pts)
  • b. Effective tax rate (3 pts)
  • c. Marginal tax rate (3 pts)

5. How much federal income tax could Max save (or pay additional) in 2022 if he had converted LS from a sole proprietorship to a C Corp? (5pts)

Is there any ceiling limitation on the amount deductible as a medical expense? Can capital expenditures be deductible as medical expenses?

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Case Study/Deductible Medical Expenses

Respond in 3 pages. APA Format

Jane suffers from a degenerative spinal disorder. Her physician said that swimming could help prevent the onset of permanent paralysis and recommended the installation of a swimming pool at her residence for her use. Jane’s resi- dence had a market value of approximately $500,000 before the swimming pool was installed. The swimming pool was built, and an appraiser estimated that the value of Jane’s home increased by $98,000 because of the addition. The pool cost $194,000, and Jane claimed a medical expense deduction of $96,000 ($194,000 – $98,000) on her tax return. Upon audit of the return, the IRS determined that an adequate pool should have cost $70,000 and would increase the value of her home by only $31,000. Thus, the IRS claims that Jane is entitled to a deduction of only $39,000 ($70,000 – $31,000).

a. Is there any ceiling limitation on the amount deductible as a medical expense? Explain.

b. Can capital expenditures be deductible as medical expenses? Explain.

c. What is the significance of a “minimum adequate facility”? Should aesthetic or architectural qualities be considered in the determination? Why or why not?

Calculate Cardinal’s 2022 Current and Quick ratios. What do you observe about the trend of the company’s liquidity positions from 2020 to 2022?

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Accounting Question

1.Calculate Cardinal’s 2022 Current and Quick ratios. What do you observe about the trend of the company’s liquidity positions from 2020 to 2022?

2.Calculate the 2022 Inventory Turnover, Days Sales Outstanding, Fixed Assets Turnover, and Total Assets Turnover ratios. Compared to past years, is Cardinal’s efficiency improving or getting worse? Explain.

3.Calculate the 2022 Debt-to-Assets and Times-Interest-Earned ratios. As a creditor, how would you feel about lending money to Cardinal Company? Explain.

4.Calculate the 2022 Profitability ratios. Focusing on the Gross Profit Margin and Net Profit Margin versus the industry average, what accounts for their difference?

5.Calculate the Return on Equity (ROE) for 2022 using the DuPont methodology (you must show your work). Use the individual components of the DuPont equation to explain why Cardinal’s ROE differed from the industry average.

6.Calculate the 2022 Price/Earnings and Market/Book ratios. Do these ratios indicate that investors currently have high or low expectations for the company’s future prospects?

Can you tell whether the statement was prepared using: (a) the direct or indirect method; (b) IFRS or some other set of GAAP? What are the major sources of cash? What are the major uses of cash?

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Read the case and answer the questions about cash flows (statements)

  • https://www.studypool.com/questions/download?id=2760463&path=uploads/questions/435260/20230302002842case_statements_of_cash_flows.pdf&fileDownloadName=attachment_1

Read the case and answer the questions about the statements

1. Can you tell whether the statement was prepared using: (a) the direct or indirect method; (b) IFRS or some other set of GAAP?

2. What are the major sources of cash? What are the major uses of cash?

3. Were operating cash flows greater than, or less than, accrual net income (or loss)?

What are the principal items giving rise to the differences between these two figures?

4. Did the entity generate enough cash from operations to cover their capital expenditures? Were cash flows from operations sufficient to cover both capex and dividend payments to shareholders? If so, what did the company do with its excess free cash flow? If not, where did the company obtain the cash used to pay for its capex and dividends?

5. Does capex exceed depreciation and amortization? What, if any, economic insights are you able to glean from this comparison?

6. Were working capital accounts (i. E., current assets and liabilities), other than cash and cash equivalents, mainly sources or uses of cash?

7. Was the company a net borrower or a net repayer of debt?

8. Did any other major items affect cash flows?

Determine how much Earned Income Credit Kylie can claim on her 2022 return and enter on the appropriate line.

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Accounting Question

  • https://www.studypool.com/questions/download?id=2760304&path=uploads/questions/4500006/20230301221927ch_8_combined_packet.pdf&fileDownloadName=attachment_1

Determine how much child tax credit Kylie can claim. The AGI phase-out is $200,000 for single, head of household, and qualifying widow or widower filers. Assume it is all nonrefundable and report on Line 19. Complete the subtotal lines through Line 24.

Determine how much Earned Income Credit Kylie can claim on her 2022 return and enter on the appropriate line. The EIC Table is below.

Complete all the remaining subtotal lines on page 2 all the way through Line 33. Then complete either line 34 if Kylie gets a refund or line 37 if Kylie owes additional tax.

If the interest rate was 8%, how much would you have been prepared to bid for the prize? Explain your reasoning.

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Lottery Prize Discussion Question – CLO 1

Several years ago, the Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune of being both bankrupt and in prison for fraud. The balance of the prize was $9,420,713, to be paid in 19 equal annual installments (there were 20 installments, but the winner had already received the first payment). The bankruptcy court judge ruled that the prize should be sold off to the highest bidder and the proceeds were to be paid to the creditors.

  • If the interest rate was 8%, how much would you have been prepared to bid for the prize? Explain your reasoning.
  • Enhance Reinsurance Company was reported to have offered $4.2 million. Find the return that the company was looking for.

Article Source:

Knecht, G. B. (1994, Aug 29). Do not pass go, do not collect ten million, go directly to jail. Wall Street Journal