IRS Practice & Procedure

Briefly describe each of the following:

a. Revenue Agent Report

b. Form 870

c. Thirty-day letter

d. Ninety-day letter

e. Closing Agreement

f. Offer in Compromise

Raphael Ltd. is a small engineering business that has annual credit sales revenue of $2.4 million. In recent years, the business has experienced credit control problems. The average collection period for sales has risen to 50 days even though the stated policy of the business is for payment to be made within 30 days. In addition, 1.5% of sales are written off as bad debts each year. The accounts receivable are currently financed through a bank overdraft, which has an interest rate of 12% a year.

The business has recently communicated with a factor that is prepared to make an advance to the business equivalent to 80% of receivables, based on the assumption that customers will, in future, adhere to a 30-day payment period. The interest rate for the advance will be 11% a year. The factor will take over the credit control procedures of the business and this will result in a saving to the business of $18,000 a year; however, the factor will charge 2% of sales revenue for this service. The use of the factoring service is expected to eliminate the bad debts incurred by the business.

Required:

Calculate the net cost of the factor agreement to the business and state whether the business should take advantage of the opportunity to factor its accounts receivables.

the financial accounting and internal accounting standards boards created a new, converged revenue recognition standard the was required to be adopted by all public companies by 2017. briefly explain why the standards setters thought this change was warranted

How do I calculate EBIT, EBT, & EBITDA? Every formula that I try is different from what Yahoo Finance lists it as.

The information below relates to ABC Company for the year ended 30 June 2020.

Sales revenue 352,000
Accrued wages 15,000
Bank balance 1 July 2019 ($22,000)
Cash paid to suppliers 192,200
Cash receipts from customers 294,000
Payments to employees and for expenses 25,000
Bank loan received 6,600
Property taxes paid 20,000
Depreciation of equipment 45,600
Interest received 20,500
Cash received from sale of share market investments 55,000
Cash paid to purchase computer hardware 40,000
Issued shares in exchange for block of land 100,000
Dividends paid 29,000
Interest paid 30,000
Net profit after tax 76,000

Required:
a) Prepare ABC Statement of Cash Flows for the year ended 30 June 2020.

b) What is the most important section in ABC's Statement of Cash Flow? Explain.

Financial controller of the Mondavi Hotel has the following information about estimated sales revenue and operating expenses for September, October and November.

The controller knows that cash sales are 30% of total sales and remaining sales are on credit. For the collection of credit sales, 50% are collected in the month of sales while the remaining 50% is collected in the following month. Mondavi Hotel pays 60% of the operating expenses in cash in the month they incur and remaining 40% is paid in the following month. In addition to this information, the controller is informed that:

• In October, Mondavi Hotel will replace the range in the main kitchen, which will cost $14,000 and will be paid in cash immediately.
• Each month, $20,000 will paid to a national bank to reduce an outstanding long-term debt.

Mondavi Hotel uses cash receipts and disbursement method for cash budgets.

Given the information:

If the beginning cash balance for October is $150,000, what would be the ending balance in October?

Critical Thinking: Nebraska is required to balance its state budget. The primary internal sources of revenue for Nebraska are income tax and sales tax. Externally, Nebraska, like all states, also receives a block grant from the Federal Government, but this might end. If the country goes into a recession and people both earn and spend less money, the state will receive less revenue. How can the state then maintain a balanced budget?

1. Apple’s Worldwide Revenues from 2004 to 2019 is as follows:

1. Enter the data above into the tab labeled Apple. Graph the data in Excel and use your graph to determine what kind of time series pattern exist. Put your answer in your spreadsheet.
2. Make the following forecasts for 2020. For all of them, use Mean Squared Error to determine which of the forecasts is the best. Make sure your answers are clearly labeled.
   1. Naïve forecast from one prior time period
   2. Calculate a 4-period moving average
   3. Calculate a 3-period moving average with the following weights for time t: time period t-1=0.8, t-2 = 0.15, t-3=.05
3. In the tab called Apple Smoothing, use the data from 3. to forecast 2020 using an alpha equal to 0.7, 0.8, and 0.9. Using MSE, which one offers the best estimate for 2020?
4. In the tab called Apple Regression, use the information from 3. and run a regression to determine your forecast for 2020
   1. Put your regression output in F1 of the same workbook.
   2. Calculate what your forecast is for 2020 in F21.
   3. How does well does this regression equation predict revenue? Write your answer in F22. In addition, explain what your numerical answer means in words.

PLEASE PROVIDE STEP BY STEP AND FORMULAS FOR EXCEL, THANK YOU

in your own words, please explain section 1.164-1(a)(2) in the internal revenue code

A University of Iowa revenue bond pays an 4.5% level-coupon, matures in twenty years, and offers an effective annual yield (i.e., true yield) of 4%. The bond has a principal value of $1000 and pays interest semiannually. What is the value of this bond, to the nearest dollar?

$1,074

$1,049

$456

$1,618