Lewis is a professional graphic artist with his own business in Sydney. He conducts his activities as a sole trader. He employs a receptionist by the name of Mary and an assistant named Jennifer, who is his mother. He received fees from many private clients during the year. Some clients paid in cash after the consultation and some paid later after receiving a bill in the mail. Lewis received the following amounts of cash during the year ended 30 June 2019:

• Total fees paid by clients immediately after a consultation                                 $300,000
• Total fees paid by clients later after receiving a bill                                              $80,000

As at 30 June 2018, Lewis had billed clients for $15,000 which were unpaid. As at 30 June 2019, he had clients with unpaid bills of $20,000.

During the year ended 30 June 2019, Lewis had the following expenses:

• Non-capital graphic design equipment (such as printer toner, paper etc)                             $16,000
• Computer acquired on 1 July 2018 used 80% for business                                                  $15,000
• Rental of the building for his business                                                                                    $60,000
• Tuition fees for his wife’s five-week course on watercolour painting                                     $20,000
• Travelling expenses to make visits to clients’ offices                                                            $25,000
• Speeding fine while travelling to see a client when he was running late                                      $900
• Graphic design conference in Berlin, Germany on the latest developments in graphic design $15,000

• Salary to Mary (his receptionist)                                                                                            $75,000
• Salary to Jennifer (his assistant)                                                                                          $105,000

A typical assistant doing Jennifer’s work would normally be paid a salary of $80,000.

During the year ended 30 June 2019 Lewis received the following amounts from his investments:

• Dividends franked to 50% paid by Watpac Limited                                                              $70,000
• Interest paid by a local Bank                                                                                                $23,000
• Proceeds from the sale of Dim Limited shares he purchased for $150,000 in 1984         $285,000

Lewis wants to use the diminishing value method of depreciation and all depreciable assets have an effective life of 4 years.

Required:

What is Lewis’s assessable income for the year ended 30 June 2019?

You are a staff accountant at a higher education institution, Philly College of Business (“the College” or PCB). The lease on the current multifunction copiers the College uses is almost up. The college has decided to replace the current copiers with Canon imageRunner AdvanceC55501 copiers. The following is the information you have been able to gather so far related to renting the copiers. The IT department was able to negotiate the following lease terms to rent the 15 copiers needed.

• The lease is non-cancelable

• 5-year lease term (estimated economic life is also 5-years)

• The local Canon dealer is responsible for all repairs and maintenance on the copiers during the lease term.

• The base rent per copier is $146.93/month. There is an additional charge of $0.0068 per page copied or printed per month.

• The IT department estimates that the College will average 10,000 to 20,000 copies per month per copier.

• The current fair market value of the copiers is $9,190 per copier.

• The copiers will be returned to the local Canon dealer when the lease term is over.

• The unguaranteed residual value is estimated to be $900 at the end of the lease.

Question

The CFO has asked you to prepare an analysis including supporting calculations on the impact to the balance sheet and income statement in each of the next 6 years of a second option related to the copiers - leasing the imageRunner AdvanceC55501copiers. In addition, the CFO would like you to compare the two options (purchase copiers with cash on hand and lease copiers). Your analysis for the CFO should be in the form of a 1-2 page memo plus supporting tables. Assume the lease term on the copiers begins October 31, 2018. At a minimum your supporting tables should include the following. You may also want to include some or all of your tables from part 1 of the project.

a. Lease amortization table (if you determine this would be a finance lease)

b. A schedule of the journal entries for each of the next 6 years, 2018 – 2023 related to the lease

c. A table summarizing the balance sheet and income statement impact in each of the six years (for both options)

d. A table calculating and comparing the present value of the net cash flows for each of the options: purchase with cash on hand and lease the copiers.

Assume the incremental borrowing rate is 6.1%

What is the highest quantity allocation (in dollars) that a non-competitive bidder can get when bidding for Treasury bills? (NOT BOND & NOTE)

Compare two cases

all portfolio weights are non-negative with the min SD

allow portfolio weights to be negative with the min SD

Describe core functions of investment banking and give details about them in terms of fund based and non-fund based activities.

Discuss whether it is important to differentiate between Revenue earned from an Exchange and Non-exchange transaction. Provide reasons for your answer.

find the general solution to the second order linear non-homogeneous differential equation
(y"/2)-y' +y = cos x