Silvia is a teacher employed by SCHE Education at their Melbourne campus. She lives in Pakenham with her family on the outskirts Melbourne about 60 kilometres from the campus. Silvia only attends the campus on Thursdays and Fridays when she takes her classes and the remaining three days a week she works from home. She prefers to work from home because she dislikes the long commute and because she feels that she can research more effectively from home. She only sees students in her office at the campus on Thursdays and Fridays. All student contact on the other days is via email.

Silvia’s home office and work library occupies 20% of the total space in her home. Her outgoings in relation to her home for the current financial year are as follows:

• Rent – $31,200
• Electricity and heating costs – $1,600
• Cleaning lady – $2,500
• Home telephone (10% of which is for university use) – $2,000
• Mobile telephone bill (50% of which is for university use) – $1,250

Required:

Calculate how much of the above outgoings are a deductible expense for Silvia.

Silvia is a teacher employed by SCHE Education at their Melbourne campus. She lives in Pakenham with her family on the outskirts Melbourne about 60 kilometres from the campus. Silvia only attends the campus on Thursdays and Fridays when she takes her classes and the remaining three days a week she works from home. She prefers to work from home because she dislikes the long commute and because she feels that she can research more effectively from home. She only sees students in her office at the campus on Thursdays and Fridays. All student contact on the other days is via email.

Silvia’s home office and work library occupies 20% of the total space in her home. Her outgoings in relation to her home for the current financial year are as follows:

• Rent – $31,200
• Electricity and heating costs – $1,600
• Cleaning lady – $2,500
• Home telephone (10% of which is for university use) – $2,000
• Mobile telephone bill (50% of which is for university use) – $1,250

Required:

Calculate how much of the above outgoings are a deductible expense for Silvia.

1. USCom, a US computer manufacturer, will be delivering a large computer system to a German firm in six months. USCom expects to receive a payment of €1.5 million at that time. Currently the spot rate is US $1.45/€, and the six-month forward rate is US $1.47/€. Suppose that the firm also has the following information from the options market:

• Six-month call option premium is US $0.0195 per euro and the exercise price is $1.42,
• Six-month call option premium is US $0.0005 per euro and the exercise price is $1.48,
• Six-month put option premium is US $0.0012 per euro and the exercise price is $1.44,
• Six-month put option premium is US $0.0032 per euro and the exercise price is $1.46.

1. Describe how USCom can hedge the currency risk with forwards and options. What are the differences between forwards and options as hedging instruments?
2. If in six months the spot rate is US $1.43/€, what are the profits and losses on the hedging strategies? What if the spot rate is US $1.48/€? Based on your calculations, which strategy is most preferable when you make the hedging decision and why?
3. If euro futures are also available, how would you hedge the currency risk with futures? What are the differences between futures and forwards?

2. Clarksville Printing Company sold 1,500 finance books for $85 each to University of the West Indies (UWI) in 2019. These books cost Clarkesville $62 each to produce. In the marketing of the books, the Company paid $4,600 to a marketing firm, and it also borrowed $50,000 on January 1, 2019, on which the Company paid 10 percent interest. Both interest and principal are paid on December 21, 2019. Depreciation expense for the year was $8,000 and Clarksville’s tax rate is 25 percent. a. Verify whether Clarksville Printing Company made a profit in 2019, by presenting an income statement in good form. b. Explain the impact of the new loan of $50,000 and the depreciation expense on the cash flows. c. Determine the Operating Cash Flow for Clarksville Company. What accounts for the difference in the net income and the operating cash flow?

2. Clarksville Printing Company sold 1,500 finance books for $85 each to University of the West Indies (UWI) in 2019. These books cost Clarkesville $62 each to produce. In the marketing of the books, the Company paid $4,600 to a marketing firm, and it also borrowed $50,000 on January 1, 2019, on which the Company paid 10 percent interest. Both interest and principal are paid on December 21, 2019. Depreciation expense for the year was $8,000 and Clarksville’s tax rate is 25 percent.

a. Verify whether Clarksville Printing Company made a profit in 2019, by presenting an income statement in good form.

b. Explain the impact of the new loan of $50,000 and the depreciation expense on the cash flows.

c. Determine the Operating Cash Flow for Clarksville Company. What accounts for the difference in the net income and the operating cash flow?

A “subliminal” message is below our threshold of awareness but may nonetheless influence us. A study looked at the effect of subliminal messages on math skills. Messages were flashed on a screen too rapidly to be consciously read. Twenty-eight students who had failed the mathematics part of the City University of New York Skills Assessment Test were randomly assigned to receive daily either a positive subliminal message (“Each day I am getting better in math”) or a neutral subliminal message (“People are walking on the street”). All students took the assessment test again at the end of the program, and the table below gives the data on each of the subjects’ scores before and after the program. Is there statistical evidence that the positive message brought about a greater improvement in math scores than the neutral message? Make no assumptions and show all work.

Got the data by Excel

CASE STUDY: Excavation Buckets Design and Manufacture

Peter Border is a qualified mechanical engineer who graduated from the QTech University two years ago. Peter works for Trueblood, a small mechanical design and manufacturing company. Owner and founder of the company is William Trueblood.

William qualified as a mechanical tradesman and saw the opportunity to build a business based on designing and manufacturing complex parts for large earthmoving equipment. The business was founded 35 years ago and today employs 55 people. Trueblood Enterprises currently has three professional engineers, Rohan Petronis (25 years of experience), Claude Weatherly (15 years of experience), and Peter. Claude is in charge of the manufacturing area while Rohan and Peter comprise the design and analysis division.

Two months ago, Trueblood Enterprises were contracted by Cranbrook Excavators to design and manufacture an excavation buckets for a range of large excavators and draglines that the company manufactures. Cranbrook Excavators is a large company with total worldwide sales of about $2 billion (Australian). Trueblood Enterprises was elated to gain the contract as they had been trying for several years to secure a contract with Cranbrook Excavators. It is hoped that this initial contract will lead to further large contracts between the two companies.

Design of the excavation buckets was undertaken by Rohan and Peter. The designed part was extremely difficult to analyse and eventually they adopted a design which they considered was adequate and safe, but with which they were not entirely happy. The design was done manually without modern 3D modelling and simulation tools. They would have liked to have had more time to carry out further analysis work, but the production area needed to get the parts into production in order to meet the timelines associated with the contract. The first batch of parts (10) has now been manufactured and delivered and Cranbrook Enterprises has expressed their pleasure at the way in which the contract has been fulfilled to date. The contract calls for the manufacture of a further 100 parts over the next 18 months.

The contract price for the parts is $22 000 each, and Trueblood Enterprises currently estimates that the total cost of design and manufacture will be $18 500 each.

Although busy with other work since the finalisation of the design for the excavation buckets, Peter has continued to ponder how the analysis of the part could be improved. Last night he had a sudden flash of inspiration and two hours’ calculation this morning has provided a much improved understanding of the stress distribution which is likely to occur in the bucket design. On reviewing the new analysis, Peter becomes concerned that the existing design may create the possibility of fatigue failure in the longer term. Further analysis leads him to the conclusion that the premature failure of the existing units is a distinct possibility, although failure is unlikely to occur until 15,000 hours, though this needs to be further validated. The original contract specification asked for a minimum fatigue life of 20,000 hours. Peter also does a quick estimate of the likely cost of using an improved design in manufacturing and estimates that the cost per part will rise to $20 500.

Peter discusses his findings with Rohan. Initially Rohan is reluctant to take any action whatsoever, as he considers it would reflect poorly on the design and analysis division, and particularly on his inherent leadership of that area based on his extended years of experience. When Peter presses the issue and threatens to go directly to William Trueblood, Rohan agrees to set up a meeting between William, Peter and himself.

At the meeting, Peter presents his findings and recommends that the new design be adopted for production, and that the parts already manufactured and supplied be recalled from Cranbrook Excavators. Predictably, William Trueblood gets very upset and irate. He asks if the parts that have already been supplied are in danger of imminent failure and Rohan says no. William Trueblood states that his decision is that the current parts will not be recalled and the production process will continue to manufacture the existing design and not the new design. He says that the existing part is "safe enough" and the company cannot afford to increase the cost of production. He also says that he is extremely disappointed with the performance of Rohan and Peter, and that the design and analysis division needs to "get its act together or the company will have to consider closing this division and outsourcing its design work". He also says that if Rohan or Peter so much as blink an eyelid out of place in the future they will be sacked from the company!

- Identify and discuss the management, contractual and ethical issues involved in this case. What courses of action would be appropriate for Peter to follow (starting immediately)?

- The answer should be no more than 3000 words. This is merely a guide and there is no penalty associated with this word count. The final section of the main body of the report should clearly identify the courses of action that Peter should follow. This section will be a major section of the report on which technical content will be judged. The conclusions reached and action recommended, however, will need to be supported by the arguments presented in the previous sections of the report. This final section should be between 200 and 250 words in length.

- Your report should have a formal format with title page, executive summary, contents page and references. The report should be word processed

Willard-Skip is self-employed and earned net income (after all proper deductions except one-half of the self employment tax) for tax purposes of $59,000 from his business. Willard’s only other income was

Qualified dividends                                                         $    950

Corporate bond interest of                                              1,200

Municipal bond interest                                                       900

a. Calculate Willard’s self-employment tax and his adjusted gross income.

b. How would your answer to “1” differ if Willard also had earned FICA wages of $76,400?

c. How would your answer to “1” differ if Willard’s net earnings from the business were $148,000, and there were no wages?

Inaccurate and unreliable information can spell financial disaster for businesses and persons who use this information for decision-making purposes. From the standpoint of a business, accurate and reliable information is necessary in order for a potential investor to have when they are considering investing with the company. If the information is not accurate and reliable, this will potentially harm the investor. Inaccurate financial information may be due to the incompetence of the accountant who prepared the financial statements or due to dishonesty and an attempt to conceal information.

Internal control is the system of policies and procedures that a company puts in place to provide reasonable assurances that:

The company’s operations are effective and efficient

The company’s financial reporting is reliable, and

The company is complying with applicable laws and regulations

1. In your first post, respond to the following questions:

a. How can a business ensure that the employee who is preparing the financial statements is capable of doing so accurately?

b. What internal controls might you recommend to the company to be sure that an attempt to conceal information has not occurred?

c. On a personal note, how do you minimize risk for errors in your work? This may include your schoolwork or the work that you do for your employer.

Apply Value Chain analysis to The University of Kansas Cancer Center

Identify potential The University of Kansas Cancer Center strengths or weaknesses

Identify organizational areas that may be enhanced with process improvement or investments