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Question: Corporate Earnings and Profit Distributions
Analyze the tax consequences of corporate earnings and profit distributions.
Scenario: GHI Corporation has significant retained earnings and is considering paying dividends to its shareholders. Analyze the tax consequences for both the corporation and its shareholders. Include in your analysis the concept of double taxation and any relevant tax planning strategies to mitigate the tax burden.
Question: Corporate Organization and Capital Structure Decisions
Assess the tax implications of corporate organization and capital structure decisions.
Scenario: DEF Corporation is planning to issue both debt and equity to raise capital for expansion. Discuss the tax implications of using debt versus equity financing. Include considerations such as interest deductibility, dividend payments, and the impact on the corporation’s taxable income.
Question: Tax Treatment of Corporate Income, Expenses, and Deductions
Evaluate the tax treatment of corporate income, expenses, and deductions.
Scenario: XYZ Corporation incurred the following expenses in the tax year: research and development costs, employee salaries, charitable contributions, and fines for regulatory violations. Explain how each of these expenses is treated for tax purposes. Include relevant tax code sections and any limitations or special rules that apply.
Question: Fundamental Principles of Federal Tax Law
Analyze and apply the fundamental principles of federal tax law to various business entities.
Scenario: ABC Consulting LLC, a partnership firm, is considering converting to a C corporation. Discuss the federal tax implications of this conversion. Include in your discussion the tax treatment of partnership income versus corporate income, potential benefits, and drawbacks of the conversion, and the impact on the partners/shareholders.
Describe the three types of project risks and detail the situation in which each type is most relevant when making a capital budgeting decision. Be sure to include the effect of correlation.
Compare and contrast cash accounting methodology and accrual accounting methodology in order to illustrate how each works best for different types of companies.
You are a health care manager at a nursing home. You are looking to expand your business arrangements and your boss suggests Stanford Health as an option. She asks you to do an analysis on their financials for 2 years to determine if this relationship will be a good fit. There is a leadership meeting next month where you will share your findings on whether to pursue a relationship with Stanford Health.
Create a 10- to 15-slide auditing proposal presentation with your financial analysis and recommendations. Include speaker notes as if you were presenting this in person. Use the Excel template provided to track your calculation and add visuals to your presentation.
Include the following items in your auditing proposal:
Background & Operational Structure:
• Describe the health care organization.
• Include the history and purpose; identify the service or product they offer.
• This information is typically found in the annual report.
• Describe the company’s operational structure (e.g., sole-proprietorship, corporation, partnership).
Financial Analysis and Stability:
• Explain the purpose of financial analysis.
• Describe the 3 basic tools of financial analysis (vertical, horizontal, and financial ratios).
• Explain the purpose of each tool.
Calculations & Interpretation:
• Using the Excel template provided, calculate and explain what the results are saying about the company’s financial status for each type of analysis (one or more slides per analysis).
• Horizontal Analysis (provide both the $ and % change)
• Cash and cash equivalents
• Total Liabilities
• Operating Revenues
• Operating Expenses
• Vertical Analysis for the Current and Prior Year (using Net Patient Service Revenue as the base figure)
• Salary and Benefits
• Supplies
• Purchase Services
• Financial Ratios Analysis for Current and Prior Year
• Current ratio (liquidity ratio)
• Debt to assets ratio (solvency ratio)
• Profit margin ratio (profitability ratio)
Recommendation For Leadership:
• Would you recommend pursuing a relationship with Stanford Health based on its financial health?
• Justify your recommendation.
Assume you gave a general ability test, measuring both verbal and computational skills, to a group of applicants for a specific job. Also assume that because of severe hiring pressures, you hired all of the applicants, regardless of their test scores. How would you investigate the criterion-related validity of the test?
Traditional career paths strictly emphasize upward mobility within an organization. How does mobility differ in organizations with innovative career paths? List three innovative career paths discussed in this chapter, describing how mobility occurs in each.
What is the purpose of each type of job analysis, and how can the three types described in this chapter be combined to produce and overall understanding of work in an organization?
What strategies are organizations using to ensure that they are able to attract women and underrepresented race ethnic groups?