ORT QUESTION (ESSAY / CASE STUDY / EXERCISE)
Case Study assignment question
Simon Mtshali, a 67-year-old South African resident, is married out of community of property to Maria
Mathe Mtshali. They only have one child (Brian Mtshali) who is 35 years old. None of them has a
disability. Simon had the following receipts and accruals for the current year of assessment:
R
 Salary from his employer 390 000
 Interest from a South African source (not a tax from investment) 40 000
 Dividend from South African company 8 000
The following were incurred by Simon during the current year of assessment:
 Pension fund contribution deducted from his salary (allowable deduction) 17 000
 Household expenses (not deductible for income tax purposes) 90 000
 Medical aid contribution per month on his behalf and his wife 5 000
All contributions to the retirement fund and medical aid were paid for by Simon.
Simon owns a small house in America which he lets out to a tenant at a monthly fee of R3 500. The
house was occupied for the full current of year of assessment and the tenant paid all rental amount
due for the current year of assessment. Since Simon is a South African resident, he hired an agent
based in America to collect rental fee from the tenant and deposit it into the bank account on behalf
of Simon. Simon pays the agent a monthly fee of R600 for this service.
Simon also runs a catering business from home. The total receipts of income nature for catering
services from Simon’s clients amounted to R220 000 for the 2019 year of assessment. Simon uses
his home kitchen that occupies 10% of the floor area of his home, to prepare the food for his catering
business. He has built an additional storeroom to store only the ingredients used for his trading
activities. The interest incurred on a loan used to build this storeroom is R1 500 for the 2019 year of

assessment. During the 2019 year of assessment, he repaid R2 000 of the capital outstanding on this
loan. Two-thirds of the Simon’s grocery purchases relates to his catering business. His grocery
purchases amounted to R120 000 for the 2019 year of assessment. The interest portion of the
mortgage loan repayments on the mortgage bond on Simon’s home is R8 200 for the 2019 year of
assessment. Simon pays R4 500 a month to a full-time assistant in his catering business. He also
paid his son, Brian Mtshali, R7 000 for the 2019 year of assessment for assisting as a waiter at
functions. Had he hired a waiter, it would have cost him R9 000 during the 2019 year of assessment.
Required:
Calculate Simon’s tax liability for the 2019 year of assessment

Morphology Exercises

Divide the following words by placing a + between their morphemes (Some of the words maybe monomorphemic and therefore indivisible.)

Example:  replaces = re + place + s

retroactive

befreinded

televise

margin

endearment

psychology

unpalatable

holiday

grandmother

morphemic

mistreatment

deactivation

saltpeter

airsickness

Match each expression under A with the one statement under B that characterizes it.

Write the one proper description from the list under B for the italicized part of each word in A.

1. Concerned that some patrons find his menu a little too cumbersome making them take longer to decide what to order, Joe Giancarlo decides to test a streamlined menu. He randomly selects 8 families of four to dine (for free) in one of his pizzerias on two consecutive Saturday evenings. On the first Saturday, the patrons receive the current menu and the streamlined menu on the second Saturday. Decision time is measured (in minutes) from the time the patrons are seated until they place their order. The patrons are not told their decision time is being measured.

The decision times measured were as follows:

Joe wants to know if there is a difference in decision time between the two menus, with a 0.05 alpha.

1. State the null and alternate hypotheses:

2. Compute  on a separate sheet. Enter value here:_______
3. Compute s_diffon a separate sheet. Enter value here:_________
4. How many degrees of freedom are there?_______
5. Is this a single- or two-tailed test? ___________
6. Calculate your t-test statistic on separate sheet. Enter value here:________
7. What is the critical t-value?________
8. Based on your t-test statistic and critical t-value, what decision should Joe make?

What is the arithmetic average time-weighted rates of return for the investor? (Do not round intermediate

calculations. Enter your answer as a decimal number rounded to four decimal places)

Arithmetic average time-weighted rates of return?

The price of natural gas varies from country to country. Suppose the country price is normally distributed with a mean of $5 per thousand cubic feet and standard deviation of $0.8.

(a) What is the first quartile of the price of natural gas? What is the 95th percentile of the price of natural gas? Show your work.

(b) We are analyzing a group of seven countries. What is the probability that the price of natural gas would exceed $5 in more than five of those countries? Show your work.

(c) Take two countries and assume that their prices of natural gas are independent. What is the probability that the price of gas is lower than $4 in at least one of them?

Considering the following time series data: Week 1 2 3 4 5 6 7 8 9 10 Sales 8 11 14 19 16 10 8 12 14 16 Compute the naïve forecast and the three-week Moving Average and evaluate the forecast accuracy considering the Mean Absolute Error (MAE), Mean Squared Error (MSE) and the Mean Absolute Percentage Error (MAPE) for each of these two predictions. Compare both of them and determine which is the best model

You can use any language. You have to provide all the data, output and input.

You are to use Linked Lists to do this Program.

The XYZ Widget store receives shipments of widgets at various costs. The store’s policy is to charge a 30% markup, and to sell widgets which were received earlier before widgets which were received later. This is called a FIFO policy.

Write a program using linked lists that reads in three types of input data and does the following:

A sales record which contains an “S” in column 1 and a quantity which represents the number of Widgets sold

A receipt record which contains an “R” in column 1 and a quantity and a price which represent the receipt of a quantity of widgets at the stated cost per widget.

A promotion card which contains a “P” in column 1 and a number such as 25 which would represent a 25% discount to the next 2 buying customers (the next 2 sales cards )

The program should

Print a message after each receipt record is read in with the price of the widgets received.

Print a message after each promotion card is read in with the amount of discount the next to customers will be receiving.

After a sales record is read in print a message stating the number sold and the price of each widget and total price of the order. For example if 200 widgets were sold and there were 50 widgets at $1.00 and 100 at $2.00 and 50 at $3.00 print (recall the 30% markup and the FIFO policy)

          200 Widgets sold

          50   at 1.30 each           Sales: $   65.00

          100 at 2.60 each          Sales: $ 260.00  

          50   at 3.90 each           Sales: $ 195.00

                               Total Sale:    $ 520.00

If there are an insufficient number of widgets in stock to fill an order sell as many as are available and then print

“ Remainder   of xxx   Widgets not available”

Do not forget the promotional discount.

At the end of the data before exiting the program print out under a separate heading the widgets still left in stock and their original purchase price.

Data for program

R/S/P           # widgets or           Price

                     discount%

R                  150                         $1.00

R                  130                         $2.00

S                  145

R                  50                           $2.50

S                  75

S                  180   

R                  50                           $4.00

R                  30                           $5.00

R                  40                           $5.50

P                  30%

S                  50

S                  30

R                  50                           $6.00

R                  265                         $10.00

S                  60

P                  50%

S                  100

S                  70

S                  175

R                  40                           $14.00

R                  75                           $15.00

S                  110

R                  30                           $16.00

R                  40                           $18.00

A survey was conducted to determine whether hours of sleep per night are independent of age. A sample of individuals was asked to indicate the number of hours of sleep per night with categorical options: fewer than 6 hours, 6 to 6.9 hours, 7 to 7.9 hours, and 8 hours or more. Later in the survey, the individuals were asked to indicate their age with categorical options: age 39 or younger and age 40 or older. Sample data follow.

(a)

Conduct a test of independence to determine whether hours of sleep are independent of age.

Find the value of the test statistic. (Round your answer to three decimal places.)

What is the p-value? (Round your answer to four decimal places.)

p-value =

Using a 0.05 level of significance, what is your conclusion?

What is your estimate of the percentages of individuals who sleep fewer than 6 hours, 6 to 6.9 hours, 7 to 7.9 hours, and 8 hours or more per night?

Fewer than 6 %

6 to 6.9 %

7 to 7.9 %

8 or more %

You are considering an investment opportunity that yields $540 one year from today, $900 in two years, and $1,300 in three years. What is the present value of these cash inflows if your opportunity cost is 7%?

3. Use the regression line formula to forecast how much a customer might spend on merchandise if that customer visited the store 13 times in a 6 month period. Consider the average monthly sales of 2014, $1310, as your base to:

* Calculate indices for each month for the next two years.

* Graph a time series plot.

4. In the Data Analysis Toolpak, use Excel's Exponential Smoothing option.

* Apply a damping factor of .5, to your monthly sales data.

*Create a new time series graph that compares the original and the revised monthly sales data.