Only do Part 2 Please:

Part 2: Scheduling of Deferred Taxes

From the information below, prepare Excel schedules (similar the chapter notes) for 2015 and 2016 to calculate deferred income taxes. Remember, when preparing the 2015 schedule, you do not know about any changes that come about in 2016 (i.e., prepare the 2015 schedule with 2015 information only). Given the following information for Company Z for 2015 (in its first year of calculating deferred income taxes):

1)   Company Z has one depreciable asset purchased January 2, 2015. The cost of the asset was $50,000. For financial statement purposes, Company Z is depreciating this asset over 10 years with no salvage value. For tax purposes Company Z is using MACRS, and the asset qualifies as a 5 year asset. Company Z has scheduled out the annual depreciation difference as follows:

                                  Straight-line   MACRS

            Year                (for financial)   (for tax)                    Difference

            2015                   $5,000          $ 10,000                      (5,000)

            2016                     5,000             16,000                    (11,000)

            2017                     5,000               9,600                      (4,600)

            2018                     5,000               5,760                         (760)

            2019                     5,000              5,760                         (760)

            2020                     5,000               2,880                      2,120

            2021                     5,000                  -0-                       5,000

            2022                     5,000                  -0-                       5,000

            2023                     5,000                  -0-                       5,000

            2024                     5,000                  -0-                        5,000

2) The company recognized $18,000 for income from its equity method investment in 2015, but received only $12,000 in dividends from this investment (and recognized $12,000 in dividend income for tax purposes).

3)   During 2015, Company Z recorded $14,000 as unearned subscription revenue, and plans to deliver the subscriptions in 2016. The IRS rules require that this amount be recognized as revenue in 2015.

4) The company also recognized estimated warranty expense of $6,000 in 2015. The warranties are expected to be paid out in 2017.

5) Pretax financial income was $200,000 in 2015, and a tax rate of 30 percent was enacted for the current and future years.

For 2016 (suggestion: use the blank column to record 2015 information, to reconcile totals across each line):

1) Assume that the depreciable asset continues to be depreciated on the methods above.

2) During 2016, the equity investment earned $30,000 and paid dividends to Company Z totaling $18,000. (Use a separate line in the schedule to record this new deferral.)

3) During 2016, $8,000 of the subscriptions were delivered. The balance will be delivered in 2017.

4) During 2016, $2,000 of the warranties was paid out. The balance will be settled in 2017.

5) Pretax financial income was $250,000 in 2016, and a tax rate of 40 percent was enacted for current and future years.

Campus Barber Shop has one barber. Customers arrive at a rate of 2.2 per hour, and haircuts are given at a rate of 3 per hour. Assume the basic Poisson-Exponential model and answer the following questions.

1. What is the probability that the barber is idle?

2. What is the probability that one customer is getting a haircut and no one is waiting in the line?

3. What is the probability that one customer is receiving a haircut and one customer is in the line waiting?

4. What is the probability that one customer is receiving a haircut and two customers are waiting in the line.

5. On the average, how many customers are in the shop?

6. On the average, how long is the line?

7. What is the average time in the line before service begins.

8. If a customer arrives at 10:00 AM, when should he expect to leave the shop?

Managerial Accounting

Question 1:

The following is the income statement of Giza Co. for the period ended December 31, 2011:

Required:

1. Complete the income statement
2. Do you advise the company to delete any product? Justify.
3. Prepare the income statement in case of deleting a product.
4. If the company can increase the sales of all products by 20%, do you still advice the company to delete any product? Justify.

Question 2:

The normal price per unit $120

Total cost per unit $90 (70% variable cost)

A customer from Nigeria would like to import 3000 units to sell in Bahrain for price $70 per unit.

The maximum capacity is 20,000 units

The local demand is 15,000 units.

Do you advise the company to accept this special order? Justify your answer?

If the customer seeks to receive the goods in Bahrain, and the cost of shipping is $8 per unit, do you advise the company to accept the offer in this case? Justify.

Question 3:

A company produces Cars, and purchasing the wheels for $ 100 per unit.

The management thinks to produce the wheels instead of purchasing it.

The cost of producing is as follows:

Variable cost $40

      Fixed cost:

New fixed cost to rent new equipment to produce the battery $250,000

General fixed cost (old fixed cost) $100000.

The quantity of wheels 5000

Do you advice the company to produce the wheels or not? Justify?

Question 4:

Cairo Co. can produce 3 products A, B & C; the following data is estimated to help in preparing the production plan for the coming period to maximize the profit:

The fixed cost for the Co. is $10000 regardless the production plan.

The total machine hours are 30,000 hours (maximum capacity).

Required:

1- Prepare the production plan.

2- Prepare the income statement (Fixed cost is allocated according the sales revenue).

Question 5:

Total cost per unit $150

Compute the price in case of:

1. The price equal cost plus 25% of cost
2. The price equal cost plus 25% of price
3. The price that achieves return on assets 15% (total assets 3000.000 and the quantity of sales 100.000 units)

Python problem

Residential and business customers are paying different rates for water usage. Residential customers pay $0.005 per gallon for the first 6000 gallons. If the usage is more than 6000 gallons, the rate will be $0.007 per gallon after the first 6000 gallons. Business customers pay $0.006 per gallon for the first 8000 gallons. If the usage is more than 8000 gallons, the rate will be $0.008 per gallon after the first 8000 gallons. For example, a residential customer who has used 9000 gallons will pay $30 for the first 6000 gallons ($0.005 * 6000), plus $21 for the other 3000 gallons ($0.007 * 3000). The total bill will be $51. A business customer who has used 9000 gallons will pay $48 for the first 8000 gallons ($0.006 * 8000), plus $8 for the other 1000 gallons ($0.008 * 1000). The total bill will be $56. Write a program to do the following. Ask the user which type the customer it is and how many gallons of water have been used. Calculate and display the bill.

The following are some examples:

Enter R for residential customer or B for business customer: B
How many gallons of water were used? 9000
Please pay this amount: 56

Enter R for residential customer or B for business customer: R
How many gallons of water were used? 9000
Please pay this amount: 51

Please show your output in the answer, thank you!

PERFECT INFORMATION (customers were required to show sellers their risk card), to ASYMMETRIC INFORMATION (customers knew their risk but could lie to the seller), and then to SYMMETRIC UNCERTAINTY (neither the customer nor seller knew the customer's risk until after the decision to buy and sell insurance had been made.

Consider the rounds with a Free Market (in which sellers could charge every customer a different price, and could refuse coverage to individual customers). As available information changed from perfect information to asymmetric information, and then from asymmetric information to symmetric uncertainty, how and why do you think the following changed? (a) The premiums (prices) offered to customers; (b) The number of customers offered insurance; and, (c) The number of uninsured. AND Explain?

A store has issued two different coupons for its customers to use. One coupon gives customers $25 off their purchase price, and the other coupon gives customers 35% off of their purchase. The store allows customers to use both coupons and choose which coupon to apply first. For this context, ignore sales tax. Let f be the function that inputs a cost (in dollars) and outputs the cost after applying the "$25 off" coupon, and let g be the function that inputs a cost (in dollars) and outputs the cost after applying the "35% off" coupon.

A.) A customer purchases an item for $120 and asks the cashier to apply the "$25 off" coupon first, followed by the "35% off" coupon. What is the cost of the item after the two coupons are applied?

b.) A customer purchases an item for $120 and asks the cashier to apply the "$25 off" coupon first, followed by the "35% off" coupon. Use function notation to represent the cost of the item (in dollars) after the two coupons are applied.

c.) A customer purchase an item for $120 and asks the cashier to apply the "35% off" coupon first, followed by the "$25 off" coupon. What is the cost of the item after the two coupons are applied?

Explain how a financial products broker might segment customers and potential customers. Which segments would be the most attractive to them, and why? (Explain different marketing methods and approaches to promoting or selling financial products and services).

Most companies have both transactional and relational customers. How should companies treat transactional customers?

A bank teller can handle 40 customers an hour and customers arrive every six minutes. What is the average time a customer spends waiting in line?

a. 15 seconds b. 0.40 minutes c. 1.25 minutes d. 30 seconds

Customers arrive at a bakery at an average rate of 18 per hour on week day mornings. Each clerk can serve a customer in an average of three minutes. How long does each customer wait in the system?

a. 1 hour b. 0.33 hour c.0.45 hour d. 0.5 hour e. 1.5 hour

Students arrive at a class registration booth at the rate of 4 per hour. The administrators serve students in a first-come, first-serve priority with the average service time of 10 minutes. What is the mean number of students in the system?

a. 1.0 b. 1.33 c. 0.67 d. 2. 0 e. 15

Customers arrive at an ice cream store at the rate of 15 per hour. The owner attempts to serve in a first come, first-serve priority. The mean time to serve a customer is 3 minutes. Whatis the probability of walking into the store and not having to wait?

a. 75% b. 100% c. 133% d. 25% e. 50%

Khaleesi Corporation (“Khaleesi”) leases dragonglass weapons to customers. She gains a loyal following of customers because dragonglass is of limited supply but high demand due to its usefulness for the upcoming winter. Further, Khaleesi tends to offer more favorable financing terms than competitors offering substitutive products (e.g., Lannister, LLC).

Khaleesi was recently approached by the Lords of the North, Inc. (“the North”) which is interested in leasing a substantial stock of weapons over a potentially lengthy period of time. The North has indicated a willingness to pay any rate that Khaleesi Corporation demands for its dragonglass products, but generally receives an interest rate of 12% on all other borrowing transactions. The North’s management are a very noble group, so payments are reasonably assured. Further, there are no material cost uncertainties.

Khaleesi has gathered its council to discuss entering into such a contract with the North and has invited you to provide financial council. Khaleesi’s board has proposed several alternative sets of lease terms (below) and would like you determine what the North’s annual payments will be under each scenario, if payments are made at the beginning of the period.

Prepare a lease amortization schedule describing the pattern of payments and interest over the lease term for both Khaleesi and the North.