1. ABC Corporation is a private sector manufacturing company that employs 450 assembly line workers. You are the HR assistant to the HR director. The director has compiled and given you the following proposed policies to review.
   1. ABC Overtime Proposed Policy 1: Assembly line workers are salaried employees. As a result, under federal and state wage and hour laws, they are not eligible for overtime pay and will not be compensated beyond their weekly salary amount for working over 40 hours per week.
   2. ABC Overtime Proposed Policy 2: Assembly line workers shall receive comp time in the amount of 1.5 times any hours worked over 40 in a given work week. Comp time hours must be used within 6 months from the end of the week for which they were earned. Comp time hours not used within this period become invalid.
   3. ABC Overtime Proposed Policy 3: Assembly line workers are paid solely based on production. As a result, assembly line workers are not eligible for overtime pay.
   4. ABC Overtime Proposed Policy 4: Assembly line workers shall be compensated at the rate of 1.5 times their hourly rate for all hours over 40 worked in a given week.

Select the best Proposed Policy. Support your choice based on the applicable laws. Then, give legal reasons for rejecting all other Proposed Policies, setting forth each word, phrase or sentence which is a potential violation of the FLSA and the provision(s) that it violates.

Timpanogos Inc. is an accrual-method calendar-year corporation. For the current year 2017, it reported financial statement income after taxes of $1,552,000. Timpanogos provided the following information relating to its current year activities:

Life insurance proceeds as a result of CEO’s death $ 200,000

Revenue from sales (for both book and tax purposes) 2,000,000

Premiums paid on the key-person life insurance policies (the policies have no cash surrender value) 21,000

Charitable contributions 180,000

Interest income on tax-exempt bonds 40,000

Interest paid on loan obtained to purchase tax-exempt bonds 45,000

Rental income payments received and earned in current year 15,000

Rental income payments received in last year but earned in current year 10,000

Rental income payments received in current year but not earned by year-end 30,000

MACRS depreciation 55,000

Book depreciation 25,000

Net capital loss 42,000

Federal income tax expense for books in current year 400,000

Required:

1. Parts A and B are done in a Word table – one page single sided.

2. Parts C and D are done on Form M-1.Fill in information form www.irs.gov

3.

A. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income.

B. Identify each book–tax difference as either permanent or temporary.

C. Complete Schedule M-1 for Timpanogos.

D. Compute Timpanogos Inc.’s tax liability.

The rust mite, a major pest of citrus in Florida, punctures the cells of leaves and fruit. Damage by rust mites is readily recognizable because the injured fruit displays a brownish (rust) color and is somewhat reduced in size depending on the severity of the attack. If the rust mites are not controlled, the affected groves have a substantial reduction in both the fruit yield and the fruit quality. In either case, the citrus grower suffers financially because the produce is of a lower grade and sells for less on the fresh-fruit market. This year, more and more citrus growers have gone to a program of preventive maintenance spraying for rust mites. In evaluating the effectiveness of the program, a random sample of fifty 10-acre plots, one plot from each of 50 groves, is selected. These show an average yield of 700 boxes of fruit, and the sample standard deviation was 70 boxes.

a) Construct a 95% confidence interval for ?, the average (10-acre) yield for all groves utilizing such a maintenance spraying program.

b) Interpret your confidence interval in one or two sentences without using the word “confident’’.

c) Using the same data, we want to construct a 99% confidence interval. Without performing the actual calculations, is the 99% confidence interval wider or narrower than the 95% confidence interval? Explain your answer in one sentence.

d) Suppose that we wanted to test ?0: ? = 725 boxes of fruit against the alternative hypothesis ?!: ? ≠ 725 with type I error rate ? = 0.05. Would we reject ?0 or fail to reject ?0 using the above data? Explain your reasoning in one sentence.

Researchers have long suspected that texting has a detrimental effect on driving behavior. To avoid unnecessary high risk of driving on the roads, driving behavior is measured via driving simulator and the number of mistakes is recorded while texting and not texting as the person is driving the simulator. Mistakes such as failing to stay within the lane, driving at least 10 miles below or above the speed limit, and failing to use the turn signal are automatically recorded. To avoid individual differences in driving behavior, participants are tested twice: once under the “texting while driving” condition and once under the “driving without texting” condition. There are nine participants in the study. Their driving mistakes are reported in the table below.

Question: Do the data support the claim that texting has a detrimental (negative) effect on driving behavior, using an α = 0.05?

For this question, you must follow the steps of hypothesis testing and complete all your calculations by hand. Remember to show your calculations and provide your conclusions in sentence format.

Once you finish this part of the assignment, you can scan or take a photo of your work and paste the scan/photo in your Word document.

Table 1.

Number of mistakes by study participants while using the driving simulator

1. The Sturgeon Corp. has developed a new line of spinning reel it plans to produce and sell in the United States. The cost of the necessary equipment will be $2.8 million plus $340,000 for installation and delivery. The equipment falls into the MACRS 7-year class. The equipment will be scrapped when the project is finished in 5 years for an estimated $700,000. Sturgeon estimates that sales in the first year of production will be 110,000 units at $30 apiece. Due to intense marketing and word-of-mouth advertising, they believe sales will increase by 50% in the second year. Sales are estimated to grow at 10% in the third year. Sales in year 4 and 5 will be the same as in year 3. Variable production costs will be 65% of sales. Fixed costs will be $250,000 in year 1, and will increase at 4% per year. The sales price of the spinning reel is estimated to increase at 4% per year over the life of the project also. Net operating working capital requirements will be 6% of sales. If Sturgeon is in the 40% tax bracket, what will be the cash flows for each year of this project (don’t forget time 0 and the extra terminal year cash flows) Also calculate the NPV assuming Sturgeon has a 12% cost of capital. Should Sturgeon Accept the project?  

2. Explain the major differences between cash flows for replacement (cost cutting) projects versus cash flows for expansion projects.

3. What are substitutionary and complementary effects in the context of capital budgeting cash flow analysis? Give an example of each.  

4. What are opportunity costs in cash flow analysis?  

Case Analysis 1: You work for a small, local telecommunications company. In five years, the company plans to undertake a major upgrade to its servers and other IT infrastructure. Management estimates that it will need up to $450,000 to cover all related costs; however, as a fairly young company, the goal is to pay for the upgrade with cash and not to take out loans. Right now, you have $300,000 in a bank account established for Capital Investments. This account pays 4% interest, compounded annually. A member of the finance department has approached you with an investment opportunity for the $300,000 that covers a five-year period and has the following projected after-tax cash flows:

Year Projected Cash Flow

1 $90,000

2 $115,000

3 $135,000

4 $110,000

5 $90,000

Based on this information, in an MS Word document, answer the following questions:

1) How much money will be in the bank account if you leave the $300,000 alone (earning 4% compounded interest) until you need it in five years?

2) If you undertake the investment opportunity, what is the Nominal Payback Period?

3) Using the Present Value factors for 7% (which can be found on any PV Factor table), what is the discounted Payback Period of the investment opportunity?

4) What is the Net Present Value at 7% of the investment opportunity?

5) Which option (make the investment or leave the money in a savings account) would you recommend to your CEO? Why? What additional factors/information might make you change your point of view?

Case 1 Quantitative Analysis

Ashley Miller has three major routes to commute to work: take RiverView Street the entire way, take several back streets, or use the expressway. The traffic patterns are pretty complex. Under good conditions, RiverView Street is the fastest route; however, when it is congested, one of the other routes is usually preferable. Over the past two months, Ashley has tried each route several times under different traffic conditions. Her travel time to work (in minutes) is summarized in the following table.

STATES OF NATURE

1. If nothing is known about the demand probabilities,

a. Based on Conservative Approach, which route should Ashley choose to commute to work?

b. Using the Minimax Regret Approach, create the Opportunity Loss/Regret Table. What route should Ashley take if she wants to minimize average drive time?

2. Suppose the probabilities for No Traffic Congestion, Mild Traffic Congestion, and Severe Traffic Congestion are 50%, 33%, and 17% respectively,

c. Construct a Decision Tree (draw it neatly by using MS Word/MS Excel Drawing Tool OR if you are drawing it by hand, please a ruler) and solve it using Expected Value Approach. What is the recommended decision alternative?

d. Calculate the Expected Value of the Perfect Information (EVPI)?

ow, it's time to turn in your semester project. Remember your project should include the following:

A Mental Health Concern - and the Patient or Community - for your project.

A brief history of the patient including diagnoses and medications - or a brief description of the community issue.

Any substance abuse, addiction or violence issues surrounding this mental health problem. Describe the attempted interventions that have been made for your patient or community, and identify what has been successful and what has not. Submit a rough draft of information gathered so far.

Describe your thoughts regarding your patient's or community's mental health issue. Are there any cognitive concerns? Think about interventions that may be helpful. Include sources for evidence-based practice.

List appropriate nursing interventions for your chosen patient or community. How will you evaluate effectiveness? Include an evaluation tool or rubric.

Complete your Semester Project by identifying mental health resources that can be used for your chosen patient or community. Finish with an educational tool for your patient or community.

Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.

Save your assignment as a Microsoft Word document. (Mac users, please remember to append the ".docx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:

Expanding Gregory’s – Greg and John has owned Gregory’s Greek Restaurant for over thirty years. The restaurant overlooks a river and offers visitors a lovely view of the countryside. Over the years, the restaurant’s popularity has grown through word-of-mouth advertising, and now guest often wait up to two hours on the weekend before being seated. Greg and John have been approached by Capstone Developers, which wants to use the Gregory’s Greek Restaurant concept in a mixed-use development it is putting together. It seems that one of Capstone’s managers ate at Gregory’s and loved the concept. Capstone Developers put together an investment proposal for Greg and Andy requesting to use their concept and cash equity for the deal.

The following are excerpts from the offer:
· Use of the Gregory Greek Restaurant name in exchange for limited partnership units in the new restaurant.
· A request for a 45% equity investment from Greg and John on the total project cost of $3,000,000. In return for their investment, they will receive 25% ownership and 25% of all cash flows, with Capstone reserving 75%.
· With an estimated $175,000 in cash flows in Year 1 and a 10% growth rate over the next decade, the return on equity looks very promising.
· Capstone Developers, as the general partner, will retain all operating rights, including the right to decide when the restaurant and property will be sold.

Analyze the structure of the equity proposal. If you were Greg and John, would you accept this offer as it stands? If not, what would you negotiate?