2. Using Marx’s theory of competition do you think that the U.S. is competitive or is there a new stage of monopoly capitalism? Start by explaining Marx’s view and then review the empirical evidence.

Are these items deductible or not deductible?

a. Deductible

b. Not deductible

____state income taxes

____Interest on a 2018 mortgage loan of $750,000

____Real estate taxes

____$67 in credit card interest

____$ 576 interest on a bank loan

____FICA withheld by employer

____federal gasoline tax

____federal excise tax

____loan fee for appraisal

____local income tax

____$500 to family physician (disregard limits)

____$2000 for long term care (disregard limits)

____$400 for eye glasses (disregard limits)

____$300 for maternity clothes

____$50 donation to your public library

____$250 donation to your church or mosque or synagogue

____$200 to a political party

____Personal property tax based on value of your property

____property tax you paid on your parent's property

____real estate taxes paid on your own property

1. the annual precipitation measurements (Pi in cm) for M city, over a 20year period are shown in the following table. Determine the mean, standard deviation, and skew coefficient for this series.

2. Determine the mean, standard deviation, and skew coefficient for the log values of annual rainfall for M City, given in Problem 1. Also determine the mean precipitation (in cm) of the log-transformed data.

Please clarify each step of the solution.

1. The annual precipitation measurements (Pi in cm) for M city, over a 20year period are shown in the following table. Determine the mean, standard deviation, and skew coefficient for this series.

2. Determine the mean, standard deviation, and skew coefficient for the log values of annual rainfall for M City, given in Problem 1. Also determine the mean precipitation (in cm) of the log-transformed data.

Please clarify each step of the solution.

Please answer if you have the correct knowledge becuase this is the second times i posted this question. i was not happy with the last answer. For example , Question d), the answer so short and general, and not answer the qestion properly. Thank you so much.

b) Using the financial information above, provide analytical calculations (supported by formulae and figures) for the purpose of reviewing the financial performance and the financial position of Magnificent Homeware Ltd. Your focus should be to highlight matters of significant concern and trends that appear unusual.  


c) From the analysis in (b) above, what are the audit risk factors for inventory and accounts receivable?

d) How would the financial statement analysis in (b) above assist to plan your audit approach for Magnificent Homeware Ltd?

e) From the information above (excluding the financial statements) list the potential problem areas and any major concerns (where there could be risk or material misstatement) that you will need to consider as part of the plan for the 2018 audit for this company. You must provide brief reasons why each of the areas you have listed require special consideration. You should be able to comment on at least 10 areas.

Sakura PLC is a leading investment company in Australia and you the below details relating to the capital structure of the company.
Information concerning raising new capital
Bonds
$1,000
Face value
13%
Coupon Rate (Annual Payments)
20
Term (Years)
$25
Discount offered (required) to sell new bonds
$10
Flotation Cost per bond
Preference Shares
11%
Required rate to sell new preference shares
$100
Face Value
$3
Flotation cost per share
Ordinary Shares
$83.33
Current Market Price
$4.00
Discount on share price to sell new shares
$5.40
Flotation Cost per bond
$5.00
2019 - Proposed Dividend
Dividend History
$4.63
2019
$4.29
2018
$3.97
2017
$3.68
2016
$3.40
2015
Current Capital Structure
Extract from Balance Sheet
$1,000,000
Long-Term Debt
$800,000
Preference Shares
$2,000,000
Ordinary Shares
Current Market Values
$2,000,000
Long-Term Debt
$750,000
Preference Shares
$4,000,000
Ordinary Shares
Tax Rate
33%
Risk Free Rate
5%
3
a) Calculate the cost associated with each new source of finance. The firm has no retained earnings available.
b) Calculate the WACC given the existing weights
The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm’s cost of capital in the medium term and believes they should be as follows
Long-term debt 40%
Preference Shares 15%
Ordinary Shares 45%
c) What impact do these new weights have on the WACC?
The firm is considering the following investment opportunity. (2020-2027)
Data is as follows
Initial Outlay
$1,600,000
Upgrade
$700,000
End of Year 4
Upgrade -
350,000
Increased sales units per annum - (Year 5-8)
Working Capital
$45,000
Increase required
Estimated Life
8
Years
Salvage Value
$60,000
Depreciation Rate
0.125
For tax purposes
The machine is fully depreciated by the end of its useful life
Other Cash Expenses
$60,000.00
Per annum (Years 1-4)
Other Cash Expenses
$76,000.00
Per annum (Years 5-8)
Production Costs
$0.15
Per Unit
Sales price
$0.75
Per Unit (Years 1-4)
Sales price
$1.02
Per Unit (Years 5-8)
Prior sales estimates
Year
Sales
2010
520000
2011
530000
2012
540000
2013
560000
2014
565000
2015
590000
2016
600000
2017
610000
2018
615559
2019
659000
2020
680000
4
d) Calculate the Net Present Value, Internal Rate of Return and Payback Period
The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent.
Year
Stock Market
Share
Index
Price
2010
2000
$15.00
2011
2400
$25.00
2012
2900
$33.00
2013
3500
$40.00
2014
4200
$45.00
2015
5000
$55.00
2016
5900
$62.00
2017
6000
$68.00
2018
6100
$74.00
2019
6200
$80.00
2020
6300
$83.33
e) Calculate the CAPM
f) Explain why this figure may differ from that calculated above (i.e. Cost of equity – Ordinary Shares)
5
Question 3
Previous Years
Sales
1400
Retained Earnings
170
Costs
900
Dividends
180
Tax rate
0.3
Assets
Liabilities/Equity
Current Assets
Current Liabilities
Cash
460
Creditors
600
Debtors
540
Short Term Notes
100
Inventory
600
Non-Current Assets
Non-Current Liabilities
PP&E
2000
Debentures
900
Total Assets
3600
Owner’s Equity
Retained Profits
1000
Ordinary Shares
1000
3600
Percentage of Sales Approach – Assume all spontaneous variables move as a percentage of sales.
a) Given an expected increase in sales of 12%, what is the amount of external funding required?
b) To maintain the current debt/equity ratio how much debt and how much equity is required?
c) Assuming the company is only operating at 95% capacity, how much new funding (if any) is required?

Baxby Fashion Ltd is a long-established Australian company, based in Brisbane that manufactures office cloths. Started in 1995 as a family-owned business, it expanded rapidly with branches around Australia and was listed on the Australian Securities Exchange (ASX) in 2000. The governance structure of Baxby Fashion includes seven directors, four of whom are executive directors and three Baxby Fashion Ltd is a long-established Australian company, based in Brisbane that manufactures office cloths. Started in 1995 as a family-owned business, it expanded rapidly with branches around Australia and was listed on the Australian Securities Exchange (ASX) in 2000. The governance structure of Baxby Fashion includes seven directors, four of whom are executive directors and three of whom are non-executive directors. The four executive directors are Sue Berry (CEO), Gordon Dawn (CFO), Neal Arthur (marketing director) and Bluberry Richard (chief information officer). The three nonexecutive directors are Rogers Burrit (who joined the board in 2013 as the independent chair), Lucy Brian (a widely recognised furniture designer) and Tully McDonald (a solicitor who has been on the board since Baxby Fashion was listed). The Baxby Fashion board has three subcommittees: remuneration, nomination and audit. The audit committee consists of Tully McDonald (chair), Bluberry Richard and Lucy Brian. Provide three compliance concerns with the current structure of the audit committee, according to the ASX’s Corporate Governance Principles and Recommendations. Explain your answers

Case study: Microsoft – increasing or diminishing returns?
In some industries, securing the adoption of an industry standard that is favourable to one’s own product is an enormous advantage. It can involve marketing efforts that grow more productive the larger the product’s market share. Microsoft’s Windows is an excellent example. The more customers adopt Windows, the more applications are introduced by independent software developers, and the more applications that are introduced the greater the chance for further adoptions. With other products the market can quickly exhibit diminishing returns to promotional expenditure, as it becomes saturated. However, with the adoption of new industry standards, or a new technology, increasing returns can persist. Microsoft is therefore willing to spend huge amounts on promotion and marketing to gain this advantage and dominate the industry. Many would claim that this is a restrictive practice, and that this has justified the recent anti-trust suit against the company.
Microsoft introduced Office 2000, a program that includes Word, Excel, PowerPoint and Access, to general retail customers in December 1999. It represented a considerable advance over the previous package, Office 97, by allowing much more interaction with the Internet. It also allows easier collaborative work for firms using an intranet. Thus many larger firms have been willing to buy upgrades and pay the price of around $230.
However, there is limited scope for users to take advantage of these improvements. Office 97 was already so full of features that most customers could not begin to exhaust its possibilities. It has been estimated that with Word 97 even adventurous users were unlikely to use more than a quarter of all its capabilities. In this respect Microsoft is a victim of the law of diminishing returns. Smaller businesses and home users may not be too impressed with the further capabilities of Office 2000. Given the enormous costs of developing upgrades to the package, the question is where does Microsoft go from here. It is speculated that the next version, Office 2003, may incorporate a speech-recognition program, making keyboard and mouse redundant. At the moment such programs require a considerable investment in time and effort from the user to train the computer to interpret their commands accurately, as well as the considerable investment by the software producer in developing the package.

Questions
a. Is it possible for a firm to experience both increasing and diminishing returns at the same time?
b. What other firms, in other industries, might be in similar situations to Microsoft, and in what respects?
c. What is the nature of the fixed factor that is causing the law of diminishing returns in Microsoft’s case?
d. Are there any ways in which Microsoft can reduce the undesirable effects of the law of diminishing returns?

What is important aspect about REA modeling for Accounting Information Systems database design?

Define what a relational database is. Describe its importance to an organization and why securing it is important