accounting

I HAVE FINISHED SOME OF THIS ASSIGNMENT - ONLY NEED THE OTHER PART DONE PLEASE - NO PLAG

PART DONE:

In this paper I will look at the HP Inc. financial data for the past year 2015.and perform a ratio analysis specifically defining the company performance in terms of profitability ratio, current ratio, debt to equity ratio and return on equity.

Profitability ratio: Net income/Net revenue * 100= 4554/103355*100 =4.41%, industries 22.23%

 Current ratio: current assets/current liabilities = 51,787.0/ 42,191.0=1.23, industries 2.11

Debt to equity ratio: total debt/HP stakeholders equity= ((2,885+21780)/27768) = 0.89, industry, 0.76.

Return on equity: Net income/Total equity = (4554/ ((26731+27768)/2) =16.71%, industry, 17.6%. (All data sourced from www.msn.com ).

The analysis of the above stated ratios reflect that HP Inc. with regards to profit as a percentage of sales the company sales is made up of 4.41% net income, and in these regard in comparison with the industry percentage it is reflected that the company is not performing so well in terms of its management of expenses relative to net sales as the industry average is 22.23%. Thus it is requisite that the company works to generate more revenue and also cut on expenses to have a better results. The company has 1.23 more current assets than current liabilities and thus it is in a better financial position and can meet its current liabilities easily. But in comparison with the industry average the company is under performing as the industry average is 2.11, (Morningstar ,Inc. 2016), hence to better the result the company has to improve its collection of accounts receivables. The company with regards to its debt to equity ratio appears to reflect the company to be a high risk company, most especially when compared to the industry average as the company debt ratio reflects that there are more than half as many liabilities than equity as it is at 0.89, in that the assets of the company are funded almost 1to 1.whereas the industry average is at 0.76, hence the company has to improve its performance by reducing its dependence on debt financing. Return on equity is showing the company performing better as even though at 16.71% and below the industry average of 17.6%, the firm is able to use money provided by the shareholders to grow and generate profits (MyAccountingCourse.com, 2015).

ACTUAL FULL ASSIGNENT

You just hired a former individual tax preparer to be in your tax accounting department. While she has a degree in taxation, all her experience has focused on individual returns.

To make sure she completely understands the differences between individual and business tax accounting, you ask her to review some of the materials from her college courses in taxation.

You have asked her to prepare a report of 450–600 words on the following topics:

• Specifically, how the treatment of the following items differs between individual and business income tax accounting:
  1. depreciation
  2. double taxation
  3. dividends
• Using the following information for b and c, create a brief numerical result demonstrating the impact of different tax treatment for individuals versus businesses.
  1. For b, assume taxable income of a corporation is $100,000 and it subsequently pays out $100,000 in dividends to all its shareholders.
  2. For c, assume a corporation gets dividends of $10,000 from another company, and it happens to be in the 34% tax bracket versus an individual in any bracket.