In a formal business report to Dr. Chris Smith, identify any errors that were made in preparing the preliminary…

In a formal business report to Dr. Chris Smith, identify any errors that were made in preparing the preliminary income statement. Dr. Smith is concerned because this information has to be given to the Pine Street Bank by the end of this course as a requirement for a small business loan. (Total – 8 points) Your report must include a list and explanation of each error that you found on the preliminary income statement. Required Information: – Formal business letter (1.5 points) – List and explanaton of at least 5 errors. (2.5 points); – Schedule of costs of goods manufactured (COGM) for the last quarter of last year ended December 31. (2 point); and – Corrected income statement. (2 points) – MLA citations (1 point deduction if the in-text citations and works cited are not in the correct MLA format.) Make sure you explain any changes that you made to the income statement for the quarter ended December 31 of last year. You will not get credit for your work if it is submitted after the end of week 3. Comment: In the business world you will be expected to know how to prepare a formal business letter. I expect you to prepare a letter that is well-written and free of grammatical errors. See Doc Sharing for assistance in preparing a formal business letter to Dr. Chris Smith. The requested information should come after the formal business letter. Week 4 – Dr. Smith also wants you to prepare a comprehensive table of tax and information returns that PIBM must file during the year. Prepare a table of tax and information returns that the firm must file for the federal government and Commonwealth of Pennsylvania. Be sure to identify by title the when the tax and/or information returns must be filed. Consider using the following headings for the table (a) Identification/schedule numbers (for example, Form 941, Form 940, etc.),; (b) Title (for example, Employer’s Quarterly Federal Tax Return, Employer’s Annual Federal Unemployment (FUTA) Tax Return, etc.); (c) Filing Frequency (for example, weekly, monthly, annually, etc.); (d) Description (Provide a brief identifying description.); and Citations in the MLA format. Use the example below to format the tax and information returns Federal Format Example Form/Schedule Title When Filed Description Form 940 Employer’s Annual Federal Unemployment Tax Return Annually Form 940 is used to report your annual Federal Unemployment Tax Act (FUTA) tax. The purpose of the FUTA tax is to provide funds for paying unemployment compensation to workers who have lost their jobs. Repeat this table for the Commonwealth of Pennsylvania. This information for the week 4 assignment is available on the Internet using a www.google.com or www.bing.com search. Comment: This is a research taxation assignment. Its purpose is to show you that companies must complete an array of filings. Be sure that your list of tax and information returns is comprehensive. Identifying less that six items will not be considered comprehensive. Go to the Internet to get this information. Scoring: – Federal government returns (3 points) – Commonwealth of Pennsylvania (3 points) – MLA citations (1 point deduction if the in-text citations and works cited are not in the correct MLA format.) You will not get credit for your work if it is submitted after the end of week 4. Week 6 – Dr. Smith wants to expand the firm’s retail operations to Canada in the next three years. Prepare a formal report to Dr. Smith that identifies the business taxes that PIBM might have to pay for a retail site located in Toronto, Canada. Submit the information by Dropbox by the end of week 6. – Prepare a properly formatted formal business letter addressed to Dr. Smith (1 point) – Provide a table that gives a comprehensive list of requirements for establishing and doing a business in Toronto. In the table consider the city’s business tax filings, registrations, business licenses, permits and other information filings (0.5 point for each item up to a maximum of 3 points) – Cite your sources in the MLA format. (1 point deduction if the in-text citations and works cited are not in the correct MLA format.) To find this information for this assignment, consider searches using the following words: – U.S. Consulate in Toronto – Establishing a Business in Toronto – Doing Business in Toronto

 

 

Schedule 1 – Preliminary Income Statement and Related Sales Information
	Unit purchase price from manufacturer						$      200
	Bicycles sold to consumers						1,600
	Unit selling price to consumer						$      520
						Philadelphia Bicycle Manufacturing Company, Inc.
						Preliminary Income Statement
						For the Quarter Ended December 30, 2011
	Sales							$        823,000
	Less: operating expenses
		Selling and administrative salaries					$  80,100
		Advertising					$  45,000
		Cleaning supplies, factory					$    6,000
		Indirect labor costs					$  35,000
		Depreciation					$  85,000
		Direct labor cost					$  95,000
		Raw materials purchased					$310,000
		Maintenance					$  47,000
		Rentals					$  65,000
		Insurance					$    9,000
		Utilities					$  40,000
		Travel, administration and sales					$    6,000
							$828,000	$        828,000
	Net operating profit/(loss)							$          (5,000)
Schedule 2 – Allocation of costs/expenses between the factory and the administrative/selling offices.
							Selling &
					Factory		Administration
		Maintenance			85%		15%
		Rentals			95%		5%
		Insurance			90%		10%
		Utilities			80%		20%
		Depreciation			90%		10%
Schedule 3 – Beginning and Ending Inventory
					Beginning		End of
					of Quarter		Quarter
	Raw materials				0		0
	Work-in-process				0		0
	Finished goods				0		0
	All materials were used during the quarter.