Appendix G: Christina Hunter Information

For your seventh client, your boss wants you to prepare Form 1040, Schedules A, B, D and supporting forms (8949, 4684, 4797) for Christina Hunter.

Facts:

Christina is a 30-year old single woman who works full time as a hair stylist and part time as the hair stylist at a local theater company.   No one else can claim Christina as a dependent. For 20X1, she had the following information:

Using the facts above, prepare Form 1040, Schedules A, B & D for Christina for the most recent year for which there is a form (this is almost always the year prior to the present year).   Remember to consider both the standard deduction vs. itemized deduction.   Also, you may need other forms, such as the 8949, and 4684, or 4797.

Once you have completed the forms manually

Appendix G: Christina Hunter Information

For your seventh client, your boss wants you to prepare Form 1040, Schedules A, B, D and supporting forms (8949, 4684, 4797) for Christina Hunter.

Facts:

Christina is a 30-year old single woman who works full time as a hair stylist and part time as the hair stylist at a local theater company.   No one else can claim Christina as a dependent. For 20X1, she had the following information:

Using the facts above, prepare Form 1040, Schedules A, B & D for Christina for the most recent year for which there is a form (this is almost always the year prior to the present year).   Remember to consider both the standard deduction vs. itemized deduction.   Also, you may need other forms, such as the 8949, and 4684, or 4797.

This are all the information

John Rigas (founder and CEO of Adelphia Communications Corporation) was an extraordinary man. Throughout his professional career, he was honored for his entrepreneurial achievements and his humanitarian service. Among other awards, he received three honorable doctorate degrees from distinguished universities, was named Entrepreneur of the Year by Rensselaer Polytechnic Institute (his college alma mater) and was inducted into the Cable Television Hall of Fame by Broadcasting and Cable magazine. He worked hard to acquire wealth and status. But a $2.3 billion financial fraud eventually cost Rigas everything. Rigas and his company, Adelphia Communications, started out small. With $72,000 of borrowed money, he began his business career in 1950 by purchasing a movie theater in Coudersport, Pennsylvania. Two years later, he overdrew his bank account to buy the town cable franchise with $300 of his own money. Through risky debt-financing, Rigas continued to acquire assets until, in 1972, he and his brother created Adelphia Communications Corporation. The company grew quickly, eventually becoming the sixth largest cable company in the world with over 5.6 million subscribers. From its inception, Adelphia had always been a family business, owned and operated by the Rigas clan. During the 1990s, the company was run by John Rigas, his three sons, and his son-in-law. Altogether, members of the Rigas family occupied a majority five of the nine seats on Adelphia’s board of directors and held the following positions: John Rigas, CEO and chairman of the board (father); Tim Rigas, CFO and board member (son); Michael Rigas, executive vice president and board member (son); James Rigas, executive vice president and board member (son); Peter Venetis, board member (son-in-law). This family dominance in the company was maintained through stock voting manipulation. The company issued two types of stock: Class A stock, which held one vote each, and Class B stock, which held 10 votes each. When shares of stock were issued, however, the Rigas family kept all Class B shares to themselves, giving them a majority ruling when company voting occurred. With a majority presence on the board of directors and an effectual influence among voting shareholders, the Rigas family was able to control virtually every financial decision made by the company. However, exclusive power led to corruption and fraud. The family established a cash management system, an enormous account of commingled revenues from Adelphia, other Rigas entities, and loan proceeds. Although funds from this account were used throughout all the separate entities, none of their financial statements were ever consolidated. The family members began to dip into the cash management account, using these funds to finance their extravagant lifestyle and to hide their crimes. The company paid $4 million to buy personal shares of Adelphia stock for the family. It paid for Tim Rigas’s $700,000 membership at the Golf Club at Briar’s Creek in South Carolina. With company funds, the family bought three private jets, maintained several vacation homes (in Cancun, Beaver Creek, Hilton Head, and Manhattan), and began construction of a private world-class golf course. In addition, Adelphia financed, with $3 million, the production of Ellen Rigas’s (John Rigas’s daughter) movie Song Catcher. John Rigas was honored for his large charitable contributions. But these contributions also likely came from company proceeds. In the end, the family had racked up approximately $2.3 billion in fraudulent off-balance-sheet loans. The company manipulated its financial statements to conceal the amount of debt it was accumulating. False transactions and phony companies were created to inflate Adelphia’s earnings and to hide its debt. When the family fraud was eventually caught, it resulted in an SEC investigation, a Chapter 11 bankruptcy filing, and multiple indictments and heavy sentences. The perpetrators (namely, John Rigas and his sons) were charged with the following counts: Violation of the RICO Act Breach of fiduciary duties Waste of corporate assets Abuse of control Breach of contract Unjust enrichment Fraudulent conveyance Conversion of corporate assets Until he was convicted of serious fraud, everybody loved John Rigas. He was trusted and respected in the small town of Coudersport and famous for his charitable contributions and ability to make friends. He had become a role model for others to follow. With a movie theater and a $300 cable tower, he had built one of the biggest empires in the history of cable television. From small beginnings, he became a multimillion-dollar family man who stressed good American values. But his goodness only masked the real John Rigas, and in the end, it was his greed and deceit that ultimately cost him and his family everything.

Questions

4.) Based on the facts of the case, do you think this case has led to civil litigation, criminal prosecution, or both? Explain your answer. 5.) Suppose you were an expert witness in this case. What would be some of the facts to which you would pay special attention?

John Rigas (founder and CEO of Adelphia Communications Corporation) was an extraordinary
man. Throughout his professional career, he was honored for his entrepreneurial achievements
and his humanitarian service. Among other awards, he received three honorable doctorate
degrees from distinguished universities, was named Entrepreneur of the Year by Rensselaer
Polytechnic Institute (his college alma mater) and was inducted into the Cable Television Hall of
Fame by Broadcasting and Cable magazine. He worked hard to acquire wealth and status. But a
$2.3 billion financial fraud eventually cost Rigas everything.

Rigas and his company, Adelphia Communications, started out small. With $72,000 of borrowed
money, he began his business career in 1950 by purchasing a movie theater in Coudersport,
Pennsylvania. Two years later, he overdrew his bank account to buy the town cable franchise
with $300 of his own money. Through risky debt-financing, Rigas continued to acquire assets
until, in 1972, he and his brother created Adelphia Communications Corporation. The company
grew quickly, eventually becoming the sixth largest cable company in the world with over 5.6
million subscribers.

From its inception, Adelphia had always been a family business, owned and operated by the
Rigas clan. During the 1990s, the company was run by John Rigas, his three sons, and his son-in-
law. Altogether, members of the Rigas family occupied a majority five of the nine seats on
Adelphia’s board of directors and held the following positions:
John Rigas, CEO and chairman of the board (father); Tim Rigas, CFO and board member (son);
Michael Rigas, executive vice president and board member (son); James Rigas, executive vice
president and board member (son); Peter Venetis, board member (son-in-law).
This family dominance in the company was maintained through stock voting manipulation. The
company issued two types of stock: Class A stock, which held one vote each, and Class B stock,
which held 10 votes each. When shares of stock were issued, however, the Rigas family kept all
Class B shares to themselves, giving them a majority ruling when company voting occurred.
With a majority presence on the board of directors and an effectual influence among voting
shareholders, the Rigas family was able to control virtually every financial decision made by the
company. However, exclusive power led to corruption and fraud. The family established a cash
management system, an enormous account of commingled revenues from Adelphia, other Rigas
entities, and loan proceeds. Although funds from this account were used throughout all the
separate entities, none of their financial statements were ever consolidated.

The family members began to dip into the cash management account, using these funds to
finance their extravagant lifestyle and to hide their crimes. The company paid $4 million to buy
personal shares of Adelphia stock for the family. It paid for Tim Rigas’s $700,000 membership at
the Golf Club at Briar’s Creek in South Carolina. With company funds, the family bought three
private jets, maintained several vacation homes (in Cancun, Beaver Creek, Hilton Head, and
Manhattan), and began construction of a private world-class golf course. In addition, Adelphia
financed, with $3 million, the production of Ellen Rigas’s (John Rigas’s daughter) movie Song
Catcher. John Rigas was honored for his large charitable contributions. But these contributions
also likely came from company proceeds.

In the end, the family had racked up approximately $2.3 billion in fraudulent off-balance-sheet
loans. The company manipulated its financial statements to conceal the amount of debt it was
accumulating. False transactions and phony companies were created to inflate Adelphia’s
earnings and to hide its debt. When the family fraud was eventually caught, it resulted in an SEC
investigation, a Chapter 11 bankruptcy filing, and multiple indictments and heavy sentences. The
perpetrators (namely, John Rigas and his sons) were charged with the following counts:

Violation of the RICO Act

Breach of fiduciary duties

Waste of corporate assets

Abuse of control

Breach of contract

Unjust enrichment

Fraudulent conveyance

Conversion of corporate assets

Until he was convicted of serious fraud, everybody loved John Rigas. He was trusted and respected in the small town of Coudersport and famous for his charitable contributions and abilityto make friends. He had become a role model for others to follow. With a movie theater and a $300 cable tower, he had built one of the biggest empires in the history of cable television. From small beginnings, he became a multimillion-dollar family man who stressed good American values. But his goodness only masked the real John Rigas, and in the end, it was his greed and deceit that ultimately cost him and his family everything.

The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $16,000 of common stock for cash. Recognized $64,000 of service revenue earned on account. Collected $57,200 from accounts receivable. Paid operating expenses of $36,200. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $71,500 of service revenue on account. Collected $65,200 from accounts receivable. Determined that $880 of the accounts receivable were uncollectible and wrote them off. Collected $100 of an account that had previously been written off. Paid $48,300 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0 percent of sales on account. Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. d-1. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1.

Question #1: WACC & Capital Budget Analysis – Based on the inputs below prepare a capital budget analysis for this Base Case using the Net Present Value, Internal Rate of Return, Profitability Index and Payback in years methods, determining whether the project is feasible. Please show your spreadsheet calculations and your final determinations of “go” or “no go” on the project. Use your Investment Return Analysis as an example for this capital budget analysis.

Project Inputs: WACC – Debt is 70% and Equity is 30% of this firm’s capital structure. Interest rate on the debt is 7.5%, firm’s tax rate is 22%. Firm’s beta is 1.50, Risk Free Rate is 1.0%, Market Return Rate is 7.0%. Project Investment Outlay, Year 0 - $1,000,000 Project Investment Life – 10 years Project Depreciation - $100,000 / year Project Salvage Value - $30,000 Working Capital Base of Annual Sales – 10% Expected inflation rate per year – 3.0% Project Tax Rate – 30% Units sold per year – 40,000 Selling Price per Unit, Year 1 - $40.00 Fixed operating costs per year excluding depreciation - $175,000 Manufacturing (Variable) costs per unit, Year 1 - $30.00

49 years severe COPD, who is on 4 liters nasal cannula home oxygen with pulse oximetry and who has OSA on BiPAP at night. Patient’s medical history is CAD (coronary artery disease), DM2, HTN, HLD, history of tobacco use. Last night, her oxygen saturation dropped to the mid 60’s and has used her nebulizer with albuterol and albuterol MDI about 30 times in the past 24 hours. She has a productive cough, shortness of breath, use of accessory muscles and is wheezing, the sputum is thick white. The patient then decided to come to the emergency room. Once the patient was in the ED, she became obtunded and the following laboratory results were obtained:

Ht: 6 feet 1 inch

WBC: 10.2                                            7.26/>80/102/37.9/7.9/95% on 70% High flow aerosol mask

RBC 4.51

Hgb 13.8

Hct 42.5%

Platelets: 135

Na: 134

K: 3.9

Total CO2: 38

BUN: 27

Creatinine: 1.0

Glucose: 130

1-Calculate the A-a gradient? Based on the result of the A-a gradient, what does it tell you about your patient?

2-Make specific recommendations for treatment of this patient

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $263 for Product F9 and $266 for Product U4.

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_25_2018_QC_CS-119201

The mean cholesterol levels of women age 45-59 in Ghana, Nigeria, and Seychelles is 5.1 mmol/l and the standard deviation is 1.0 mmol/l (Lawes, Hoorn, Law & Rodgers, 2004). Assume that cholesterol levels are normally distributed.

1. Find the probability that a woman age 45-59 in Ghana has a cholesterol level above 6.2 mmol/l (considered a high level).
2. Suppose doctors decide to test the woman’s cholesterol level again and average the two values.  Find the probability that this woman’s mean cholesterol level for the two tests is above 6.2 mmol/l. <----Which two numbers am I averaging?
3. Suppose doctors being very conservative decide to test the woman’s cholesterol level a third time and average the three values.  Find the probability that this woman’s mean cholesterol level for the three tests is above 6.2 mmol/l. <----Not sure which numbers I'm averaging?
4. If the sample mean cholesterol level for this woman after three tests is above 6.2 mmol/l, what could you conclude?

I'm answering these questions using the "normalcdf" function in my TI-84. I'm not sure how to get the new standard deviation/numbers I'm averaging for 2 and 3.

Information

For each of Questions 1 to 5, is the given value of the correlation coefficient reasonable?

Hint: think about the strength and the direction of the relationship between the two variables in each case.

Note: It is subjective to decide whether the magnitude of the correlation between two variables should be, for example, 0.7 or 0.8. The below questions don't ask you to make a decision like this.

Question 1 

A correlation of r = +0.7 between gender and height.

Question 2 

Let X = speed of vehicles driving on the highway and Y = distance for the vehicles to stop when the brakes are applied.

A correlation of r = +1.0 between X and Y.

Question 3 

A correlation of r = 0 between number of slurpees (a frozen beverage) sold at 7-Eleven in one day and number of cups of hot chocolate sold at the same store in the same day.

Question 4

A correlation of r = +0.7 between number of pages in a fiction novel and time it takes to read the novel.

Question 5 

Let X = time it takes a marathon runner to finish the race and Y = number of runners who finish ahead of him.

A correlation of r = -0.8 between X and Y.

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $263 for Product F9 and $266 for Product U4.

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)