1. Name 3 new tax law changes as it relates to Individual Tax Payers?
2. Name 3 new tax law changes as it relates to Corporate Tax Payers?
3. What is the new “Pass thru” tax deduction? Which entities does it apply to?
4. Do you think that by reducing the corporate tax rate it will help or hurt the United States?

Given the current state of things with the coronavirus, we are seeing real damage being done to the economy. Policymakers are struggling to help the economy. Suppose you were in charge of either monetary policy (i.e., changes in the money supply) or fiscal policy (i.e., changes in government spending and taxing), explain what you would do and why you believe it would help.

Answer for Cabbage:

1. What microbes are involved in the process?
2. What is the purpose of adding the ingredients in your recipe?
3. What metabolic processes are the microbes undergoing – what specific by-products are they producing that contribute to the changes in the food?
4. What changes occur in your food during the fermentation? e.g. Does the amount of oxygen in the container change? Why?  Same questions for carbon dioxide, pH, alcohol, temperature.

Target is the publicly traded company I chose. Review its most recent Annual Report.

Use the Income Statement and Balance Sheet to determine the changes in:

assets, liabilities, and equity

total revenue and net income

Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder’s view.

Assumptions: An analysis of how the assumptions made in designing the approach to the calculations impacted your results.  Some possible things to consider that may or may not have had an impact on your results (identify which ones you think are more and less important and explain your reasoning)

1. The process for the cost of debt assumes the times interest earned is a good proxy for measuring credit risk, what other financial variable if any should be considered? Does this assumption limit the results? (each time the level of debt changes. Will this actually occur and does this limit the applicability of your results.

2. The base level of interest rates, the risk free rate, changes over time. Is this important in calculating the optimal level. Since the estimate is based on the current environment does it matter if this changes.

3. The beta may change over time, does keeping it constant limit your results or is that an acceptable assumption.

4. The credit spreads can change as the broad economy changes. The spread used represent estimates of the current spreads, is this the best approach or would an average spread for each credit risk level be more appropriate.

ZZZ Company produces and sells three products. Information
about these products for the month of May is given below:

                             Product A       Product B
selling price per unit          $16             $14      
variable costs per unit         $ 7             $ 6         
number of units sold           20,000          25,000

                             Product C
selling price per unit          $20 
variable costs per unit         $15
number of units sold           24,000

ZZZ Company reported total fixed costs of $166,000 in May.

In order to improve profitability, ZZZ Company made the
following changes in June:

1.  adjusted the selling price of Product B
2.  increased the advertising for Product B by $30,000

These changes resulted in the number of units of Product B
that were sold doubling. However, these changes also 
resulted in the sales of Product A decreasing by 30% as
some customers started buying Product B instead of Product
A. Assume the sales of Product C were not impacted by these
changes.

Calculate the selling price per unit for Product B needed in
June in order for the June net income to be the same as the
May net income.

1. The multiplier model assumes that the price level is:

a. fixed.

b. neither rigidly fixed nor perfectly flexible.

c. flexible in the short run but fixed in the long run.

d. perfectly flexible.

2. The multiplier model is designed to answer which one of the following questions?

a. What causes changes in aggregate expenditures?

b. How will output be affected by changes in aggregate expenditures?

c. How did the economy arrive at its current price and output level?

d. How will prices respond to changes in aggregate expenditures?

3. Expansionary monetary policy is always expected to increase:

a. nominal income but never real income.

b. real income but never nominal income.

c. nominal income.

d. real income.

4. Inflation occurs when the price level:

a. rises and then falls.

b. changes.

c. increases one year only.

d. increases continuously.

5. Inflation hurts:

a. everyone.

b. those whose incomes don't change.

c. those whose incomes can change.

d. no one.

hat does the code below do?

clear
vec = randi(20,1,100)-10;
iter=0;
k=1;
while k<= length(vec)
    if vec(k)<0
      vec(k)= vec(k) * -1;
    end
   k = k+1;
end

a.

This code generates a vector with 100 random integer elements between 20 and 100, and changes the sign of the elements coverting all poivitive ones to negative and all negative ones to positive.

b.

This code generates a vector with 20 random integer elements between 1 and 100, and changes the sign of all the elements.

c.

This code generates a vector with 20 random integer elements between -100 and 100, and replaces all the negative integers with a positive integer of the same absolute value.

d.

This code generates a vector with 100 random integer elements between -10 and 10, and changes the sign of all negative elements.

e.

This code generates a vector with 20 random integer elements between 1 and 100, and changes the sign of all negative elements.

Topic 2:

Book: Operations and Supply Chain Management Jacobs & Chase 14e

2. The Levy Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 600 boxes per day, in two 8-hour shifts (300 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 400 boxes per shift. Labor costs average $13 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $4,000 per day, and rose to $4,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day.

a) What is the firm's multifactor productivity ( exhibit 2.5) before and after the changes?

b) What is the firm's labor hours productivity before and after the changes?

c) What is the percent change in the multifactor productivity before and after the changes?

Determining and minimizing estate tax. Spencer Cook died on July 18 of the current year, leaving a gross estate of $8,600,000. Claims to be settled against that estate included funeral, administrative and medical expenses of $180,000 and the other debts of $210,000. Spencer’s wife Sara has a considerable estate of her own, and she and spencer have each agreed to leave $500,000 of their personal estate to charity. One year after Spencer’s death, Sara passed away. Allowable expenses against Sara’s estate totaled $420,000 excluding charitable bequests. Using the estate tax rates and unified credit in the text:

Exhibit 20-1: Unified Transfer Tax Rate Schedule for the Year 2014

1 Determine the estate tax to be paid by both Spencer and Sara assuming that no credit shelter trusts are employed and that Sara’s gross estate is $13,300,000 including the assets inherited from Spencer.

2 Assume that prior to death Spencer and Sara both created a credit shelter trust calling for the surviving spouse to be the income beneficiary and their children to be the recipient of the principal. The principal of the trust is equal to the applicable exclusion amount. Determine the estate tax to be paid by both Spencer and Sara assuming that Sara’s gross estate at the date of her death was $11,400,000 including the assets inherited from Spencer.