What substantiation is required for the company to support its treatment of the corporate jet? Conclusions 1. Personal flights taken by an employee on an employer-provided aircraft are included in the employee’s compensation according to Regulation Section 1.61-21(g)(4)(i). 2. When the corporate jet is used for personal travel, the amount taxed to its employees should be determined by the Aircraft Valuation formula as stated under Regulation Section 1.61-21(g)(5).
The purchase price for the Aircraft is (a) $21 million, consisting of: i. $16 million, $300,000 of which comes from the release of funds in the Escrow Account; and ii. the principal amount of the Note; plus (b) the Buyer’s assumption of the Assumed Liabilities. 2.3 Time and Place of Closing. The Closing is to take place on November 25, 20XX at the offices of Workhard & Playlittle, 1133 Avenue of the Americas, New York, New York, 10:00 A.M. Eastern Standard Time, or at such other time and date as to which the parties may agree (the time and date of the Closing, the “Closing Date”).
The Boeing Company “Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined”(“Boeing: About Us, August 2011). The “Boeing: About Us” indicated that the Boeing, one of the largest the United States (U.S.) exporters provides numerous products and services for military and airline in 150 countries. Also Boeing employed more than 165,000 people across the U.S. and in 70 countries (August 2011). This paper will focus on a recent legal settlement and improvement of management-union relations through a case study of the Boeing. Litigation The National Labor Relations Board (NLRB), responsible for election of labor union representation and prosecuting unfair labor issues,
What is the after-tax cost of debt if the tax rate is 34%? (5 pts) c. Explain what other methods you could have used to find the cost of debt for AirJet Best Parts Inc.(10 pts) d. Explain why you should use the YTM and not the coupon rate as the required return for debt. (5 pts) 2. Compute the cost of common equity using the CAPM model. For beta, use the average beta of three selected competitors.
The present value of an annuity due of $1 at 6 percent for 8 years is 6.58 and the present value of an annuity due of $1 at 8 percent for 8 years is 6.19. At the end of 8 years, title to the airplane will be conveyed to Wasala. How much expense should Wasala recognize in Year Two? (round to the nearest
AIRCRAFT PURCHASE AGREEMENT AIRCRAFT PURCHASE AGREEMENT dated November 5, 2013, between Supersonic Wings Corp., a Delaware corporation (the "Seller"), and Fly-by-Night Aviation, Inc., a New York corporation (the "Buyer"). WHEREAS, the Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller, the Aircraft (as defined in Section 1.1); This Agreement provides for the sale of the Seller’s Gulfstream Aerospace Corporation G550 jet to the Buyer. Accordingly, the parties agree as follows: Article 1. Definitions 1.1 Defined Terms. As used in this Agreement, terms defined in the preamble of this Agreement have their assigned meanings, and the following terms have the meanings set forth below: "Agreement" means this Aircraft Purchase Agreement and all Schedules and Exhibits, as each may be amended from time to time.
What are the advantages of managing a college dining hall versus a commercial restaurant? (Points : 10) Question 15. 15. TCO 1. You are a service manager for a national airline preparing to leave on a transcontinental flight from New York City to San Francisco.
Liquidity Ratio Calculations: Current Ratio = Current Assets / Current Liabilities $147,800 / $90,283 = $1.637:1 Acid-Test Ratio = (Cash + Short-Term Investments + Net Receivables) / Current Liabilities $89,664 + $0 + $51,869 / $90,283 = $1.567:1 Receivables Turnover = Net Credit Sales / Average Receivables ($1,109,295 - $89,664) / [($51,869 + $81,557) / 2] = 15.283 *Average Collection Period = 365 / 15.283 = 23.883 Days When evaluating Huffman Trucking’s ability to pay off short-term debt and maturing obligations, it’s imperative to analyze the company’s liquidity. Utilizing the current ratio to analyze liquidity, which compares all current assets to current liabilities,
They carry approximately 32 million passengers a year. They have to focus on a variety of goals and objectives for both short and long term survival in the competitive global market. Their aims, objectives and goals are to maximise profit in the long-term by focusing on improving and maintaining outstanding customer service, becoming the world’s leading premium airline and gaining competitive advantage. They have a goal of transforming British Airways into the world's leading global premium airline which requires meeting the rising expectations of their customers. Their investment in their staff, fleet and facilities ensures they provide the very best in customer service.
Questions 1. Using the financial statements provided for S&S Air, calculate each of the ratios listed in the table for the light aircraft industry. Current ratio=current assets \current liabilities 1,561,800\2,085,000=0.74 times Quick ratio=current assets-depreciation\current liabilities 1,561,800-976,200\2,085,000=0.28 times Cash ratio= cash\current liabilities 315,000\1,561,800=0.20 times Total assets turnover=Sales\total assets 21,785,300\13,077,800=1.66 times Inventory turnover=cost of goods sold\inventory 15,874,700\740,800=21.4 times Receivable turnover=Sales\accounts receivable 21,785,300\506,000=43.05 times Total debt ratio=total assets-total equity\total assets ( 13,077,800-7,192,800)\13,077,800=0.44 times Debt-equity ratio=total debt\total equity (13,077,800-7,192,800)\7,192,800= 0.81 times Equity multiplier= Total assets\total equity 13,077,800\7,192,800=1.81 times Times interest earned=EBIT\Interest 2,171,900\341,600=6.3 times Cash coverage ratio=EBIT+Depreciation \Interest 2,171,900+976,200\341,600=9.2 times Profit margin=Net income\sales 1,098,180\21,785,300=0.05 times Return on assets=Net income \total assets 1,098,180\13,077,800=0.08 times Return on equity=Net income \total equity 1,098,180\7,192,800=0.15 times 2. Mark and Todd agree that a ratio analysis can provide a measure of the company’s performance. They have chosen Boeing as an aspirant company.