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Identify two (2) technological innovations that have changed the fundamental manner in which companies have conducted business over the last 20 years, and recognize one (1) aspect of each that has impacted your own career. What piece of technology could you not live without in the workplace today? Two technological innovation after the internet has changed my work style and impacted me is cell phone and the remote access to office network. IPhone or other smart phone has change the world. Now with iPhone you can do so many things. Getting work email though your phone, responding them and edit them. My CEO has not logged into his computer for last five years and he operates entire business through iPhone. If you need to find information on web or in your email, review document or prepare something smartphones are allowing all this and that has change my work style. Remote access to your office network. Previously you need to have secure connection and lot of investment if you need to connect remotely to your office to complete your work. Companies use to prefer people to come to office and complete their work as it was easy and secure. With VPN and other technology all these things are easy and now I work form my home and complete all the task what I can do it form my office.

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Bunny Greenfelder
Bunny GreenfelderLv2
2 May 2019

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As part of the anti-recession stimulus bill, the federal government allocated $19 billion dollars to subsidize the modernization of medical records. You’ve been considering making the switch to computer-based records for some time now, and the stimulus funds will certainly make that decision a little easier now. But, which system will you buy? You’ve visited a number of other practices and hospitals to see what they’re using, and you’ve found a dizzying variety—desktops, laptops, PDAs, smartphones, all running different software.

You’ve heard, though, that the touchpad tablet might trump them all. Released in April 2010, the tablet computer has an elegant design and an operating system that is so easy to use, that a widespread video shows a two-year-old figuring out how to use it in just five minutes. With its great battery life, light weight, and sharp display, many in the medical industry are practically giddy about how the touchpad tablet can revolutionize medical records. Several medical facilities have conducted trial programs to test the touchpad tablet’s functionality in medical facilities. Best of all, it’s relatively cheap compared to other laptop computers, and it has a low learning curve, since most of the doctors in your practice already use the smart phone.

In addition to getting federal funding, then, the touchpad tablet can bring several first-mover advantages for your practice. Your medical records will be consolidated and more efficient than competitors, which will make your entire operation run more smoothly. Patients will have to spend less time waiting for you and your staff to retrieve their charts and review their history. But just as you’re about to order touchpad tablets for everyone in the office, one of your colleagues has some warnings. "Do you think that flimsy thing can handle the rigors of a medical setting?", he asks. He doesn’t think it would last more than a month in a pediatrician’s office, much less a hectic emergency room. And what about security? What kind of features does it have that will protect patient confidentiality? He reminds you that the first smart phone sold for $600, but had a minimal number of applications. Just two months later, the price was cut to $400, and ten months after that, they sold the smart phone 3G, with faster network access and thousands of more apps, for just $300. You could buy the touchpad tablet now, he says, but why not wait until if the technology company releases a cheaper, faster touchpad tablet with better features? He reminds you that other competitors will soon be releasing their own tablet computers. What if those are even better for medical records and they become the industry standard? Do we want to be left behind?

Read the following audit engagement letter, then asnwer the questions below.

March 1, 2015

Smart and Partners, PLLC is pleased to have the opportunity to provide you with professional services. This engagement letter embodies the entire agreement regarding the services to be rendered by our firm to you.

We will prepare:

Your 2014 federal and resident state individual income tax returns;

If applicable, 2014 non-resident state individual income tax returns for the same states you filed with for 2013, unless you direct us otherwise;

2014 federal and resident state individual income tax returns for any children you specifically request;

If applicable, 2014 property tax returns for the same jurisdictions you filed with for 2013, unless you direct us otherwise;

• If applicable, 2014 business or occupational license tax returns for the same jurisdictions you filed with for 2013 unless you direct us otherwise.

Please note any requested additions or deletions to the returns listed above at the bottom of this letter.

We will prepare your returns based on your filing status as reflected in your income tax returns for last year. If your marital status has changed, you want to change your filing status, or you have questions about your filing status, please contact us immediately to discuss this.

Attached to this letter is a series of important questions you should answer as a part of this engagement agreement. Any unanswered questions will be taken as a negative response and will be included in the signature and representation below.

Please forward your organized tax information at your earliest convenience, including any supporting documentation required to complete the returns. Any additional documents we request of you after we have received and reviewed your tax information must be received by us no later than April 1, 2016 to allow for the timely preparation of your tax returns.

We expect to begin the preparation of your returns upon receipt of all required tax documents. The un-extended filing due date for your tax returns is April 18, 2015.

You agree that in the event of unresolved tax issues or delays in processing, or if we do not receive all of the necessary information on a timely basis, it may become necessary to apply to extend the due date. Applying for an extension of time to file may extend the time available for a government agency to undertake an audit of your return or may extend the statute of limitations. In the event you owe taxes in excess of the amounts withheld from your income or, if you are self-employed, in excess of estimated tax payments made, penalties and interest may accrue on your unpaid taxes after the due date.

Additionally, extensions may affect your liability for other penalties and interest or compliance with government and constituent deadlines. We are available to discuss this matter with you at your request at our regular hourly fees should the need arise.

It is your responsibility to provide all the information required for the preparation of complete and accurate returns. You should retain all the documents, canceled checks or other data that form the basis of income and deductions. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority. You have the final responsibility for your income tax returns and, therefore, you should review them carefully before you sign them.

Our work in connection with the preparation of your income tax returns does not include any procedures designed to discover fraud, theft, defalcations or other irregularities, should any exist. However, should we find any irregularities or unusual items we will bring them to your attention. We will render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax returns. If we discover any errors or omissions on a prior year return we will bring that to your attention.

This engagement does not include responding to inquiries by any governmental agency or tax authority. If your tax return is selected for examination or audit, you may request that we assist you in responding to such inquiry. In that event, we would be pleased to discuss providing assistance to you under the terms of a separate engagement for that specific purpose.

The Internal Revenue Code and regulations impose preparation and disclosure standards with non-compliance penalties on both the preparer of a tax return and on the taxpayer. To avoid exposure to these penalties, it may be necessary in some cases to make certain disclosures to you and/or in the tax return concerning positions taken on the return that do not meet these standards. Accordingly, we will discuss tax positions that may increase the risk of exposure to penalties and any recommended disclosures with you before completing the preparation of the return. If we concluded that we are obligated to disclose a position and you refuse to permit the disclosure, we reserve the right to withdraw from the engagement and you agree to compensate us for our services to the date of withdrawal. Our engagement with you will terminate upon our withdrawal.

The IRS permits you to authorize us to discuss, on a limited basis, aspects of your return for one year after the return's due date. Your consent to such a discussion is evidenced by checking a box on the return. Unless you tell us otherwise, we will check that box authorizing the IRS to discuss your return with us. In accordance with federal law, in no case will we disclose your tax return information to any third party for any purpose other than to prepare your return without first receiving your consent.

The potential for conflicts of interest exist in any engagement. In the event that we in our sole discretion believe that a conflict has arisen affecting our ability to service your account in accordance with either the ethical standards of our firm or the ethical rules of our profession, we may be required to suspend or terminate our services.

In accordance with our firm's current policy on document retention, we will retain copies of the records you have provided and our work papers for your engagement for a period of seven years. After that time, our work papers and files will no longer be available. Physical deterioration or catastrophic events may shorten the availability time of our records. The working papers and files of our firm are not a substitute for your records.

In the interest of facilitating our services to you, we may communicate by facsimile transmission or by sending electronic mail over the Internet. Such communications may include information that is confidential to you. Our firm employs measures in the use of facsimile machines and computer technology designed to maintain data security. While we will use our best efforts to keep such communications secure in accordance with our obligations under applicable laws and professional standards, we have no control over the unauthorized interception of these communications once they have been sent and we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted by us in connection with the performance of this engagement.

Our professional fee for the services outlined below will be based upon the complexity or the work to be performed and our professional time to complete the work. Additionally, this fee is dependent on the availability, quality, and completeness of your records. In the event you fail to timely provide us with records that we request or if the records you provide are incomplete or unusable, we reserve the right to terminate the engagement without completing our work. If we can assist you in preparing needed records, we will contact you to discuss the problem, the additional work needed, our fees for such work, and the anticipated delay in completing our engagement before rendering further services.

All invoices are due and payable upon presentation.

You represent that the information you are supplying is accurate and complete to the best of your knowledge and that all deductible expenses, including but not limited to meals, entertainment, travel, business gifts, charitable contributions, dues and memberships, and vehicle use are supported by records as required by law. You understand Smart & Associates will not verify the information you provide, but may ask for clarification. You also represent that any unanswered questions on the attached list should be accepted as a negative response.

We look forward to serving you. Our services will conclude upon delivery to you of your 2014 tax returns for your review and filing with the appropriate taxing authorities. If the foregoing fairly sets forth your understanding, please sign this letter in the space indicated and return it to our office in the enclosed envelope. However, if there are other tax returns you expect us to prepare, such as gift and/or property, please inform us by noting so just below your signature at the end of the returned copy of this letter.

Very truly yours,
Smith and Associates, PLLC

Accepted:

James Johnson

James Johnson, Client

1-Assume that James Johnson asks the Smart and Parners, LLC to complete his taxes. Is it necessary for this agreement to be in writing? Why or why not? Explain.

2-Assume that James' Dad, Mark, accompanies him to the accounting firm. James, who is 20 and owns a housecleaning business, executes the engagement letter. Mark tells the accountant who is preparing James’s taxes that if James fails to pay for the firm’s services, he will pay for them. If James fails to pay the accounting firm, will the firm be able to force Mark to pay for the services? Why or why not?

3-James explains to the accountant that she expects to receive a tax refund. Before James executes the engagement letter, he informs the accountant that he currently does not have any money to pay the firm, but he will pay the firm once she receives her tax refund. The accountant indicates that this will be acceptable. James subsequently executes the engagement letter. As soon as the accounting firm completes the tax return, it bills James and demands immediate payment. If James challenges the payment due date, is the oral agreement between James and the accountant regarding payment admissible in court? Why or why not?

For these following problems, assume that James has executed the engagement letter.

4-Assume that Jamse decides to do his own taxes with TaxAct. His friend, Bobbie, needs to have her taxes completed. James tells Bobbie that she will assign her rights to have her taxes done by the accounting firm to Bobbie, if Bobbie will pay the accounting firm for its services. Can James do this? Why or why not? What rights does the accounting firm have, if any?

5-The accounting firm completes Jamie’s taxes and asserts that Jamie owes it $500 for its services. In need of money, James agrees to clean Mister Duck’s house for $500. James asks Mister Duck to pay her debt to the accounting firm rather than pay her directly. Assuming that James performs her obligations to Mister Duck, what rights, if any, does the accounting firm have if Mister Duck fails to pay it? What rights, if any, does James have?

6-Assume that the accounting firm files James' taxes on the wrong form, resulting in substantial taxpayer payment penalties. What rights, if any, does James have?

7- On March 15, 2015, James stops by the accounting firm and tells an accountant that she cannot locate certain tax records and that she will not be able to supply them to the accounting firm. Assuming that the firm has already started James’s return, what rights, if any, does the accounting firm have at that point?

Scenario: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors. The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first they need to have a better understanding of the business financials. The Lee’s are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they don’t have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them.

1. Financial Statements: Develop an Income Statement, Cash Flow Statement, and Balance Sheet based on the provided data for year 20XX (the previous year) that follows. Explain the purpose of each financial statement.

a. Income Statement Data for 20XX:

* Gross Sales = $33,291

* Coupons and Discounts = $549

*Cost of Goods = $10,276

* Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves)

* advertising fees =$2000

* bank fees = $120

* phone/internet = $1200

* shipping = $1380

* utilities = $900

* office supplies = $785

* Income tax = 26 %

B. Cash Flow Statement Data for 20XX:

* Cash in bank = $21,120

* Depreciation = $800

* Proceeds from disposal of investment = $3,000

* Capital Expenditure = -$1,600

* Repayment of Bank Loan = -$5,000

* Interest Expense Associated with Bank Loan = -$345

* Consider any data relevant from the income statement.

C. Balance Sheet Data for 20XX:

* Cash = $21,120

* Accounts Receivable = $496

* Accounts Payable = $200

* Inventory = $10,507

* Accumulated Depreciation = -$1,000

* Common Stock = $0

2. Financial Ratios: Calculate the following financial ratios and explain the meaning of the results.

a. Net Profit Margin

b. Quick Ratio

c. Debt-to-Equity Ratio

3. Cost Classification: The Lee’s have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs. If business is expected to be steady from month to month, provide a monthly budget based on these figures.

a. Advertising Fees = $4,000

b. Labor = $400/month

One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.

c. Packaging Supplies = $3,000

d. Office Supplies = $800

e. Phone and Internet Service = $115/month

f. Product Supplies = $9,000

g. Shipping Fees = $1,000/month

h. Conference Exhibitor Fee = $3,000

i. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1,200

j. Utilities for the Home Workshop = $105/month

4. Net Present Value: The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42,000. It is expected that the new piece of equipment will lead to cash flows of $17,000, $29,000, and $40,000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.

5. Budget Preparation: The Lees believe that there production could quadruple in one month after being on Shark Tank. They want to be prepared for this. Based on the monthly budget calculated above, create a new monthly budget for quadrupled production. Assume that 70 units were produced in the first budget and 280 units will be produced per month with the new budget.

6. Incremental Analysis: If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, there rent will be $1,200 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1350 per month. However, utilities will likely only cost an additional $150 per month. They want to compare their options over one year’s time (since each rental contract is a 1 year commitment). What is the incremental analysis if the Lees choose Option 1 over Option 2?

7. Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Also assume that the value for total units per year is based on sales of 70 units per month. Therefore total units sold per year are 840. The selling price per unit is $79.

8. Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit?

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