Analyzing War on
P.A.D 510- Public Policy A

– This assignment is for someone who is expert in the U.S. tax law

-You will be required to do a tax research and write a file memo

(file meme example in the attachments) on a problem a client is having (Problem will be given to you after accepting this

– You are required to ask the client at least 5 questions related to her issue to extract more info to help you to solve their problem –

It is better to have access a website that you can research U.S. laws related to the assignment – The file tax memo should be at least 3 pages single spaced and it must be supported by good evidence

-The tax problem will be given after accepting the assignment and more detailed instructions

So this is the problem that my client is facing, you are required to ask them questions (5 at least) in order to get more information from them that will help you to write the paper.

I own a home–my personal residence–north of Indianapolis on a tributary of the White River. I bought this home because it was located on the river where my family could boat and fish–probably not swim, too muddy. Due to some industrial pollution of the river, thousands of fish were killed in the White River and now nobody wants to get close to the water. I figure that the value of my property has dropped dramatically. I purchased the home for $500,000 five years ago and now it may be worth only $300,000. The polluting company was penalized by the EPA, but we didn’t get anything and my lawyer doesn’t think we can sue. Can I write this $200,000 loss off? Let me know if you need more information.

Muddy Waters

See the file memo sample it should be the same format. The analysis part should not be that long.

You should have 1 issue and 1 conclusion

It is important to include which section in the U.S. laws is applied to the client in the analysis part

i want you to come up with at least 5 questions about the clients problem as soon as you can. So i can ask them via email and post the answers here when they reply. If you can send me the question in 15 or 20 hours please

  

Financial Ratios

Please complete each of the exercises below in a word document. Save the document, and submit to in week using the Assignment Submission button. Week Five Exercise Assignment

Financial Ratios

1. Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:

   

Edison

Stagg

Thornton

 

Cash

$6,000

$5,000

$4,000

 

Short-term investments

3,000

2,500

2,000

 

Accounts receivable

2,000

2,500

3,000

 

Inventory

1,000

2,500

4,000

 

Prepaid expenses

800

800

800

 

Accounts payable

200

200

200

 

Notes payable: short-term

3,100

3,100

3,100

 

Accrued payables

300

300

300

 

Long-term liabilities

3,800

3,800

3,800

            Compute the current and      quick ratios for each of the three companies. (Round calculations to two      decimal places.) Which firm is the most liquid? Why?

  

2. Computation and evaluation of   activity ratios. The following data relate to Alaska Products, Inc:

        

20X5

20X4

 

Net   credit sales

$832,000 

$760,000 

 

Cost   of goods sold

530,000

400,000

 

Cash,   Dec. 31

125,000

110,000

 

Average   Accounts receivable

205,000

156,000

 

Average   Inventory

70,000

50,000

 

Accounts   payable, Dec. 31

115,000

108,000

 

Instructions

a. Compute the accounts receivable and inventory turnover ratios for   20X5. Alaska rounds all calculations to two decimal places.

 

3. Profitability ratios, trading on the equity. Digital Relay has both preferred and common stock outstanding. The com­pany reported the following information for 20X7:

   

 

Net sales

$1,750,000 

 

Interest expense

120,000

 

Income tax expense

80,000

 

Preferred dividends

25,000

 

Net income

130,000

 

Average assets

1,200,000

 

Average common stockholders’   equity

500,000

 

 

Compute the profit      margin on sales ratio, the return on equity and the return on assets,      rounding calculations to two decimal places. Does the firm have      positive or negative financial leverage? Briefly ex­plain.

  

4. Horizontal analysis. Mary Lynn Corporation has   been operating for several years. Selected data from the 20X1 and 20X2   financial statements follow. 

       

20X2 

20X1

 

Current Assets 

$86,000 

$80,000   

 

Property, Plant, and Equipment   (net) 

99,000

90,000

 

Intangibles 

25,000

50,000

 

Current Liabilities 

40,800

48,000

 

Long-Term Liabilities 

153,000

160,000

 

Stockholders’ Equity 

16,200

12,000

 

Net Sales 

500,000

500,000

 

Cost of Goods Sold 

322,500

350,000

 

Operating Expenses 

93,500

85,000

       

a. Prepare a horizontal analysis for 20X1 and 20X2. Briefly comment   on the results of your work. 

5.Vertical analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow. 

  

20X2 

20X1

 

Current Assets 

$86,000 

$80,000 

 

Property, Plant, and Equipment (net) 

99,000 

80,000 

 

Intangibles 

25,000 

50,000 

 

Current Liabilities 

40,800 

48,000 

 

Long-Term Liabilities 

153,000 

150,000 

 

Stockholders’ Equity 

16,200 

12,000 

 

Net Sales 

500,000 

500,000 

 

Cost of Goods Sold 

322,500 

350,000 

 

Operating Expenses 

93,500 

85,000 

       

a. Prepare a vertical analysis for 20X1 and 20X2. Briefly comment on the results of your work. 

 

6. Ratio computation. The financial statements of the Lone   Pine Company follow.

LONE PINE COMPANY

Comparative Balance Sheets

December 31, 20X2 and 20X1   ($000 Omitted)

20X2   

20X1

Assets 

Current Assets 

Cash and Short-Term Investments 

$400 

$600 

Accounts Receivable (net) 

3,000

2,400

Inventories 

3,000

2,300

Total Current Assets 

$6,400 

$5,300   

Property, Plant, and Equipment 

Land 

$1,700 

$500 

Buildings and Equipment (net) 

1,500

1,000

Total Property, Plant, and Equipment 

$3,200 

$1,500   

Total Assets 

$9,600 

$6,800   

Liabilities and Stockholders’   Equity 

Current Liabilities 

Accounts Payable 

$2,800 

$1,700   

Notes Payable 

1,100

1,900

Total Current Liabilities 

$3,900 

$3,600   

Long-Term Liabilities 

Bonds Payable 

4,100

2,100

Total Liabilities 

$8,000 

$5,700   

Stockholders’ Equity 

Common Stock 

$200 

$200 

Retained Earnings 

1,400

900

Total Stockholders’ Equity 

$1,600 

$1,100   

 

Total Liabilities and Stockholders’ Equity   

$9,600 

$6,800   

LONE PINE COMPANY

Statement of Income and   Retained Earnings

For the Year Ending December   31,20X2 ($000 Omitted)

Net Sales* 

$36,000 

Less: Cost of Goods Sold 

$20,000 

Selling Expense 

6,000

Administrative Expense 

4,000

Interest Expense 

400

Income Tax Expense 

2,000

32,400

Net Income 

$3,600   

Retained Earnings, Jan. 1 

900

Ending Retained Earnings

$4,500   

Cash Dividends Declared and Paid   

3,100

Retained Earnings, Dec. 31 

$1,400   

*All sales are on account. 

          

Instructions 

Compute the following items for Lone Pine Company for 20X2, rounding all calcu­lations to two decimal places when necessary: 

a. Quick ratio 

b. Current ratio 

c. Inventory-turnover ratio 

d. Accounts-receivable-turnover ratio 

e. Return-on-assets ratio 

f. Net-profit-margin ratio 

g. Return-on-common-stockholders’ equity 

h. Debt-to-total assets 

i. Number of times that interest is earned 

Week 3 Discussion

According to research, employers want managers to possess three skills through education and experience. They are the following:

• Technical skill-The ability to perform a specific job in the field they work.
• Conceptional skill-The ability to think beyond the department in which you work to understand how the entire organization function as a whole.
• Human Skill-The soft skills of connecting and interacting with people.

Tell me about a time you encounter a manager who possess one of these skills. How did they effectively manage their team using the skill identified?

If a manager doesn’t possess these skills do you think they can be an effective manager. Why or Why not.

Part 2: Respond to a Peer

Read a post by one of your peers and respond, making sure to extend the conversation by asking questions, offering rich ideas, or sharing personal connections.

Peer’s Discussion is below, in which I’ll need to provide a response too.

April Robinson

RE: Week 3 Discussion

Hello everyone,

I use to work in the childcare field for over 10 years. One skill that the manager possess was human skills; the soft skills of connecting and interacting with people. We would have meetings about this and it was one of the most important thing to do. The children would be in the hands of the caregivers most of the day, everyday, all week. Parents would want to know who their child’s day been. They would want to know how much food the child ate, if any. Especially, if there was an accident or incident that occured that day. You would have to write it up, but you would have to explain verbally what happened also.

I believe if the manager doesn’t possess this that there is no effective manager. It’s their job to over look everything to make sure the business is ran effectively. If communicating with the parents isn’t effective, there will be unhappy parents, which means they would probably pull their child out that childcare facility, then it messes up the business. So, it is very important for the manager to be effective at all times.