Reflections on both monetary and fiscal policies about the 2008 crisis, economics homework help

The financial crisis of 2008 caused macroeconomists to rethink monetary and fiscal policies. Economists, financial experts, and government policy makers are victims of what former Fed chairman Alan Greenspan called a “once in a century credit tsunami”.

Since then, there have been various legislative and policy strategies considered and implemented to ‘fix’ the problems that allowed the crisis. The true question is whether we are headed down the same path, and if the ‘victims’ of the 2008 crisis have done anything to shift the tide. Review this clip, and review your own additional research, then share your thoughts on what caused the financial crisis and whether the United States is going in the right or wrong direction with its current policies. In explaining your position, be sure to include cited research that supports your consideration, recommendations for safeguards going forward, and what role, if any, government should play.

Your discussion should include reflections on both monetary and fiscal policies, clearly noting which caused/remedied the crisis. Make sure you include the following concepts in your analysis:

• Interest rates
• The financial services industries (CDOs, CMOs, the stock market, credit flows, money markets, etc.)
• Tax rebates
• Stimulus
• TARP
• Government debt and deficit
• Inflation
• Unemployment
• Immigration
• GDP 

Advanced Accounting: Partnership Formation and Operation

Discussion 6.1: What Kind of Business Is This?

After graduating from college, Shelley Williams held several different jobs but found that she did not enjoy working for other people. Finally, she and Yvonne Hargrove, her college roommate, decided to start a business of their own. They rented a small building and opened a florist shop selling cut flowers such as roses and chrysanthemums that they bought from a local greenhouse.

Williams and Hargrove agreed orally to share profits and losses equally, although they also decided to take no money from the operation for at least four months. No other arrangements were made, but the business did reasonably well and, after the first four months had passed, each began to draw out $500 in cash every week.

At year-end, they took their financial records to a local accountant so that they could get their income tax returns completed. He informed them that they had been operating as a partnership and that they should draw up a formal articles of partnership agreement or consider incorporation or some other legal form of organization. They confessed that they had never really considered the issue and asked for his advice on the matter.

What advice should the accountant give to these clients?

Discussion 6.2: How Will the Profits Be Split?

James J. Dewars has been the sole owner of a small CPA firm for the past 20 years. Now 52 years old, Dewars is concerned about the continuation of his practice after he retires. He would like to begin taking more time off now although he wants to remain active in the firm for at least another 8 to 10 years. He has worked hard over the decades to build up the practice so that he presently makes a profit of $180,000 annually.

Lewis Huffman has been working for Dewars for the past four years. He now earns a salary of $68,000 per year. He is a very dedicated employee who generally works 44 to 60 hours per week. In the past, Dewars has been in charge of the larger, more profitable audit clients whereas Huffman, with less experience, worked with the smaller clients. Both Dewars and Huffman do some tax work although that segment of the business has never been emphasized.

Sally Scriba has been employed for the past seven years with another CPA firm as a tax specialist. She has no auditing experience but has a great reputation in tax planning and preparation. She currently earns an annual salary of $80,000.

Dewars, Huffman, and Scriba are negotiating the creation of a new CPA firm as a partnership. Dewars plans to reduce his time in this firm although he will continue to work with many of the clients that he has served for the past two decades. Huffman will begin to take over some of the major audit jobs. Scriba will start to develop an extensive tax practice for the firm.

Because of the changes in the firm, the three potential partners anticipate earning a total net income in the first year of operations of between $130,000 and $260,000. Thereafter, they hope that profits will increase at the rate of 10 to 20 percent annually for the next five years or so.

How should this new partnership allocate its future net income among these partners?

Need this answered please.

Select your home state or a state in which you are familiar, choose an identified hate group, and then use the internet to research the group.

Fraternal Order of the Cross    Ku Klux Klan   Madison, IN

Prepare a 1,050- to 1,450-word paper describing the group, their mission, and their message. Discuss the impacted and protected class populations they have targeted and any incidents they have been responsible for. Include in your analysis what methods of prevention, intervention, and treatment human service workers could apply to mitigate their impact.

Format your paper consistent with APA guidelines.

SERIOUS TUTORS ONLY; ABSOLUTELY NO PLAGIARISM.

1 PAGE AND  EXCEL SPREADSHEET

Consider the following scenario:

Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million, and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the extra capacity will be needed. (Assume that Deer Valley Lodge will sell all 300 lift tickets on those 40 days.) Running the new lift will cost $500 a day for the entire 200 days the lodge is open. Assume that the lift tickets at Deer Valley cost $55 a day. The new lift has an economic life of 20 years.

1. Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer.
2. Assume that the after-tax required rate of return for Deer Valley is 8%, the income tax rate is 40%, and the MACRS recovery period is 10 years. Compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer.
3. What subjective factors would affect the investment decision?

Revenue and Expenses

Week Two Exercise Assignment

Revenue and Expenses

1. Recognition of concepts. Jim Armstrong operates a small company that books enter­tainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either (1) pre­paid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.

a  Interest owed on the company’s bank loan, to be paid in early July 

b  Professional fees earned but not billed as of June 30 

c  Office supplies on hand at year-end 

d  An advance payment from a client for a performance next month at a convention 

e  The payment in part (d) from the client’s point of view 

f  Amounts paid on June 30 for a 1-year insurance policy 

g  The bank loan payable in part (a) 

h  Repairs to the firm’s copy machine, incurred and paid in June 

2. Understanding the closing process. Examine the following list of accounts:

Note Payable	Accumulated Depreciation: Building
Alex Kenzy, Drawing	Accounts Payable
Product Revenue	Cash
Accounts Receivable	Supplies Expense
Utility Expense

Which of the preceding accounts

a. appear on a post-closing trial balance?

b. are commonly known as temporary, or nominal, accounts?

c. generate a debit to Income Summary in the closing process?

d. are closed to the capital account in the closing process?

3. Adjusting entries and financial statements. The following information pertains to Sally Corporation:

· The company previously collected $1,500 as an advance payment for services to be rendered in the future. By the end of December, one half of this amount had been earned.

· Sally Corporation provided $1,500 of services to Artech Corporation; no billing had been made by December 31.

· Salaries owed to employees at year-end amounted to $1,000.

· The Supplies account revealed a balance of $8,800, yet only $3,300 of supplies were actually on hand at the end of the period.

· The company paid $18,000 on October 1 of the current year to Vantage Property Management. The payment was for 6 months’ rent of Sally Corporation’s headquarters, beginning on November 1.

Sally Corporation’s accounting year ends on December 31.

Instructions

Analyze the five preceding cases individually and determine the following:

a. The type of adjusting entry needed at year-end (Use the following codes: A, adjust­ment of a prepaid expense; B, adjustment of an unearned revenue; C, adjustment to record an accrued expense; or D, adjustment to record an accrued revenue.)

b. The year-end journal entry to adjust the accounts

c. The income statement impact of each adjustment (e.g., increases total revenues by $500)

4. Adjusting entries. You have been retained to examine the records of Mary’s Day Care Center as of December 31, 20X3, the close of the current reporting period. In the course of your examination, you discover the following:

· On January 1, 20X3, the Supplies account had a balance of $1,350. During the year, $5,520 worth of supplies was purchased, and a balance of $1,620 remained unused on December 31.

· Unrecorded interest owed to the center totaled $275 as of December 31.

· All clients pay tuition in advance, and their payments are credited to the Unearned Tuition Revenue account. The account was credited for $65,500 on August 31. With the exception of $15,500 all amounts were for the current semester ending on December 31.

· Depreciation on the school’s van was $3,000 for the year.

· On August 1, the center began to pay rent in 6-month installments of $24,000. Mary wrote a check to the owner of the building and recorded the check in Pre­paid Rent, a new account.

· Two salaried employees earn $400 each for a 5-day week. The employees are paid every Friday, and December 31 falls on a Thursday.

· Mary’s Day Care paid insurance premiums as follows, each time debiting Pre­paid Insurance:

Date Paid	Policy No.	Length of Policy	Amount
Feb. 1, 20X2	1033MCM19	1 year	$540
Jan. 1, 20X3	7952789HP	1 year	912
Aug. 1, 20X3	XQ943675ST	2 years	840

Instructions

The center’s accounts were last adjusted on December 31, 20X2. Prepare the adjusting entries necessary under the accrual basis of accounting.

5. Bank reconciliation and entries. The following information was taken from the accounting records of Palmetto Company for the month of January:

Balance per bank	$6,150
Balance per company records	3,580
Bank service charge for January	20
Deposits in transit	940
Interest on note collected by bank	100
Note collected by bank	1,000
NSF check returned by the bank with the bank statement	650
Outstanding checks	3,080

Instructions:

a. Prepare Palmetto’s January bank reconciliation.

b. Prepare any necessary journal entries for Palmetto.

6. Direct write-off method. Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was  $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectibles.

a. Prepare the journal entry needed to write off Mattingly’s account.

b. Comment on the ability of the direct write-off method to value receivables on the year-end balance sheet.

7. Allowance method: analysis of receivables. At a January 20X2 meeting, the presi­dent of Sonic Sound directed the sales staff “to move some product this year.” The president noted that the credit evaluation department was being disbanded be­cause it had restricted the company’s growth. Credit decisions would now be made by the sales staff.

By the end of the year, Sonic had generated significant gains in sales, and the president was very pleased. The following data were provided by the accounting department:

20X2	20X1
Sales	$23,987,000	$8,423,000
Accounts Receivable, 12/31	12,444,000	1,056,000
Allowance for Uncollectible Accounts, 12/31	?	23,000 cr.

The $12,444,000 receivables balance was aged as follows:

Age of Receivable	Amount	Percentage of Accounts Expected to Be Collected
Under 31 days	$4,321,000	99%
31-60 days	4,890,000	90
61-90 days	1,067,000	80
Over 90 days	2,166,000	60

Assume that no accounts were written off during 20X2.

Instructions

a. Estimate the amount of Uncollectible Accounts as of December 31, 20X2.

b. What is the company’s Uncollectible Accounts expense for 20X2?

c. Compute the net realizable value of Accounts Receivable at the end of 20X1 and 20X2.

d. Compute the net realizable value at the end of 20X1 and 20X2 as a percentage of respective year-end receivables balances. Analyze your findings and comment on the president’s decision to close the credit evaluation department.

Week_Two_Exercise_Assignment_B.docx