Question 2
Meeting Audience Needs: Necessary Information ? Late on a Friday afternoon, you learn that the facilities department is going to move you ? and your computer, your desk, and all your files ? to another office first thing Monday morning. However, you have an important client meeting scheduled in your office for Monday afternoon, and you need to finalize some contract details on Monday morning. You simply can't lose access to your office at this point, and you're more than a little annoyed that your boss didn't ask you before approving the move. He has already left for the day, but you know he usually checks his voice mail over the weekend, so you decide to leave a message, asking him to cancel the move or at least call you at home as soon as possible. Using the voice-mail guidelines listed in Table 2.5, plan your message (use an imaginary phone number as your contact number and make up any other details you need for the call). Submit a written script of the message: 1. Your job is to draft a voicemail that will get your boss to say "yes, I agree with you and I will call facilities." That means that the facts you use MUST be persuasive. Your assignment allows you to make up the persuasive facts. The fact that you have an important client meeting scheduled the afternoon after the move and that you need to finalize contract details is irrelevant. What makes your office so special that the move must be delayed? Is it specially designed? Is it set up in a way that 2. Keep the message short -- approximately 10 seconds. Make up the name of your boss. Use your name and a telephone number. State your number once in the beginning and repeat it at the end. 3. Remove "I language." This is any form of the word "I." While you may have to use "I" once, it should not begin a sentence. The general rule is: If you have to use "I," hide it in the middle of a sentence. However, in most cases, you can restructure a sentence and remove the word altogether. Based on the information, submit a written script of the message (no word limit)
Question 3
Which of the following statements is CORRECT? a. If investors become more risk averse but rRF does not change, then the required rate of return on high-beta stocks will rise and the required return on low-beta stocks will decline, but the required return on an average-risk stock will not change. b. If Mutual Fund A held equal amounts of 100 stocks, each of which had a beta of 1.0, and Mutual Fund B held equal amounts of 10 stocks with betas of 1.0, then the two mutual funds would both have betas of 1.0. Thus, they would be equally risky from an investor?s standpoint, assuming the investor?s only asset is one or the other of the mutual funds. c. An investor who holds just one stock will generally be exposed to more risk than an investor who holds a portfolio of stocks, assuming the stocks are all equally risky. Since the holder of the 1-stock portfolio is exposed to more risk, he or she can expect to earn a higher rate of return to compensate for the greater risk. d. Assume that the required rate of return on the market, rM, is given and fixed at 10%. If the yield curve were upward-sloping, then the Security Market Line (SML) would have a steeper slope if 1-year Treasury securities were used as the risk-free rate than if 30-year Treasury bonds were used for rRF. e. The slope of the yield curve has no effect on the slope of the SML. Please explain. Thanks
Question 4
Fairfield Corporation uses an actual cost system and produces a single product. Information about the product for the past year is as follows: Product X Production (units) 100,000 Sales (units) 80,000 Selling price $20.00 Machine hours 50,000 Manufacturing costs: Direct materials $ 80,000 Direct labor 240,000 Variable overhead 40,000 Fixed overhead 200,000 Nonmanufacturing costs: Variable selling $48,000 Fixed selling 20,000 There were no beginning inventories. (Round amounts to two decimal places.) Fairfield's unit product cost for Product X using variable costing would be? Answer $4.00 $3.60 $3.20 $2.80 Company sells a product for $10. Budgeted sales for the first quarter of the current year are as follows: Budgeted Sales January $600,000 February 800,000 March 900,000 The company wants to maintain an inventory of finished units equal to 30 percent of the following month's sales, and 10,000 units are on hand at the beginning of the year. Each unit requires two pounds of raw material costing $1 per pound. The company maintains a raw materials inventory equal to 20 percent of the following month's production needs. Budgeted production in units for February would be? Answer 131,000 107,000 83,000 80,000 The following information was reported on two projects of Dartmouth, Inc.: Prior Year Current Year Sales $30,000,000 $30,000,000 Operating income 2,160,000 2,100,000 Average operating assets 12,000,000 12,000,000 Dartmouth, Inc.'s margin for the current year is? Answer 7.0% 7.2% 4.0% 2.5% Company has developed the following standards for one of its products: Direct materials 12 pounds x $14 per pound Direct labor 3 hours x $18 per hour Variable overhead 3 hours x $8 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds at $13.60 per pound Materials used 9,000 pounds Units produced 800 units Direct labor 2,500 hours at $19.00 per hour Actual variable overhead $22,000 The company records materials price variances at the time of purchase. Rax Company's variable standard cost per unit would be? Answer $78 $192 $246 $222 sales for Sommers, Inc., for next year and beginning and ending inventory data are as follows: Sales 50,000 units Beginning inventory 4,000 units Desired ending inventory 8,000 units The selling price is $40 per unit. Each unit requires four pounds of material which costs $6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year. How many pounds of material would Sommers need to purchase? Answer 207,000 216,000 225,000 201,000 Sales $540,000 Variable costs $378,000 Fixed costs $120,000 Expected production and sales in units 40,000 units The break-even point in sales dollars is? Answer $498,000 $400,000 $171,429 $112,500 cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity $400 + $140 per direct labor hour Maintenance $800 + $40 per direct labor hour Supervisors' salaries $16,000 per month Indirect materials $50 per direct labor hour If July production is expected to be 200 units that require 300 direct labor hours, estimated manufacturing overhead costs would be? Answer $17,430 $55,200 $63,200 $86,200 Chess Company provided the following information from its 2006 income statement. Sales revenue $800,000 Cost of goods sold 400,000 Selling expenses 100,000 Administrative expenses 50,000 Other operating expenses 50,000 Interest expense 20,000 Tax expense 63,000 In addition, the company reported the following asset balances for fiscal years ended December 31, 2005 and 2006: Assets 2005 2006 Cash $50,000 $55,000 Accounts receivable 170,000 185,000 Inventory 100,000 120,000 Investment in Checkers Company 80,000 85,000 Undeveloped land 170,000 170,000 Buildings, net of depreciation 400,000 450,000 Calculate Chess Company?s operating income. Answer $117,000 $180,000 $200,000 $400,000 Company began the year with no inventories of work in process or finished goods. Budgeted and actual costs for the year were as follows: Variable costs: Direct materials $15 per unit Direct labor $10 per unit Manufacturing overhead $7 per unit Selling expenses $5 per unit Fixed costs: Manufacturing overhead $180,000 per month Selling and administrative $50,000 per month During the first three months of the year, production and sales in units were as follows: Production Sales January 20,000 20,000 February 20,000 18,000 March 20,000 22,000 Total 60,000 60,000 Lee Company sells its product for $100 per unit. There were no work-in-process inventories at the end of any month and costs have remained stable all year long. Lee's unit cost of production for March using absorption costing would be? Answer $46 $41 $37 $32,Hello: Are you able to see the attachment,Hello: Are you able to see the attachment
Question 5
Write a memorandum to your client Dr. Green addressing each of the issues listed below. The memorandum should be no less than one page and no more than three pages in length. APPLICABLE LAW This assignment is primarily designed to expose students to common sources of tax law (court opinions, regulations, etc.) and how to apply them to fact patterns. This is not a research paper, although students who wish to do their own research are welcome to do so (but it?s not required). All the legal sources required to address the issues presented are provided in Doc Sharing: (a) the Whitten case, (b) the Rusnak case, and (c) Treasury regulation 1.165-10. Use these sources of tax law to formulate your advice regarding each of the issues listed below: ISSUES 1. Dr. Green is a practicing physician in Chicago who, as an avid blackjack and slot machine player, travels to Las Vegas every other weekend to gamble. He would like to know what criteria are used to determine whether his gambling activities constitute a trade or business for federal income tax purposes and whether or not you think his gambling activities qualify for trade or business status. 2. If Dr. Green's gambling activities do not qualify as a trade or business, can he deduct his gambling-related travel and lodging expenses against his gambling winnings? 3. Assume Dr. Green's wife, Mrs. Green, gambles to the same extent that Dr. Green gambles. Assume that the Greens file a joint tax return. If Mrs. Green has a large net gambling gain for the year and Dr. Green has a large net gambling loss, can they combine their gambling transactions and use his loss to offset her winnings?,I think you need to use the cases provided (examples) to generate a more complete and powerful argument. The cases provided are: 1. Whitten v Commissioner, TC Memo 1995-508 2. Charles C. Rusnak, TC Memo 1987-249 I need more examples from these two cases in the solution. I will attach again the cases for your convenience. Thank you!
