Analysis of Federal Taxation Assignment Example | Topics and Well Written Essays - 750 words

Analysis of Federal Taxation - Assignment Example   With other deductions totaling $55,960, and real estate taxes being deducted separately at $2,200, their total deductions were $57,960. This led to Dan and Cheryl having a taxable income of $118,790 because the total deductions were deducted from their AGI. This meant that their total tax for 2010 would be $22,060. Payments and credits would equal $159. The tax estimated that Dan and Cheryl would actually have to pay would be $21,901, which would be 12.03% of the total income of $182,050. This puts Dan and Cheryl in the 25% tax bracket. Some detailed calculations had to be done before all of these figures were made. First of all, every wage and compensation of any kind was annotated, as well as federal tax withholding, OASDI, Medicare, and state taxes if they applied. For federal taxes, Cheryl only had $500 of withholding taken out of her $45,000-dollar salary, so it is natural that a majority of Dan and Cheryl’s taxes would probably come from her not having had federal withholding taken away from her salary. Additionally, Dan only had $20,000 dollars’ worth of federal withholding taken away from his salary, so he was probably due for paying at least some more federal tax that was not taken out in withholding. Dan was reimbursed for all but $20 worth of travel expenses, excluding the $9,600 dollars that were used for gas mileage, which was calculated by multiplying 30 cents per mile times the 32,000 miles used for business out of a total of 38,000 miles. Certain expenses of Dan’s couldn’t be reimbursed—for example, entertainment of customers. But all of Cheryl’s costs associated with her nursing profession were legitimate expenses—for professional dues, uniforms, and nursing journals related to her profession. Some other expenses that were tacked on to Dan’s business expense account could not be added on, such as utilities for the whole entire house.

Internal Analysis and SWOT Analysis Essay Example | Topics and Well Written Essays - 1000 words

Internal Analysis and SWOT Analysis - Essay Example Porter came up with the Value Chain concept to explain how a firm could create value from its processes and partnerships. He divided a firm’s activities into Primary and Secondary Activities, which are respectively essential and ancillary to its business success. In this paper we will take a view of Southwest Airlines’ internal strategy and how it measures up against the competition. Physical Resources In terms of physical resources, we see that Southwest Airlines has a good number of aircraft both in its own fleet and that of the recently acquired Air Tran. Despite its low cost leadership strategy, it has concentrated on having the latest fleet of 717 and 737 MAX for passenger comfort. This shows that Southwest Airlines is committed to its goal of making the customer have a WOW experience and continue choosing it at their airline of choice. As of 31 Dec 2011, it had a total of 698 aircraft comprising 610 Boeing 737s and 88 Boeing 717s (Annual Report, 2011). Financial R esources Despite its low cost strategy, Southwest earned a profit of $178 million in 2011 and has been doing so consistently over the last 39 years. This is highly commendable in an industry that has been fraught with risk since the last decade. Fuel costs remain the major worry, as reported in the Annual Report. With its reduced fares and refund/ carry forward policy, Southwest still has an edge over other airlines (Annual Report, 2011). Amazingly, it is still investing in technology like faster reservation systems and latest aircraft to match competitors and meet customer needs. Human Resources For Southwest, its people are one of its key resources. As of 31 Dec 2011, it had in excess of 45,000 employees, including 19,000 flight personnel and 2,400 administrative staff (Annual Report, 2011). The various groups of workers are represented by at least 18 different Collective Bargaining Agents (CBAs) under different Unions. Meeting the demands of these entities and integrating Air Tra n staff into the Southwest fold from a cultural and operational standpoint is expected to be a major challenge. Technical Resources   In terms of technical resources, Southwest Airlines can look upon the experience of its staff, the use of modern aircraft and reservation systems, and the operational and logistical administration of its fleet, cargo and passengers. No less important is its ability to sync its operations, service, marketing and sales to run concurrently and efficiently (Henry, 2007). Intellectual Resources Among Southwest’s key intellectual resources are its use of the Love field for its operations and the mind and vision of its upper management including the CEO and the Board of Directors that give the airline its strategic direction for the future. Its brand name and reputation for efficient service no doubt contribute to its revenues and profits. It is currently concentrating on attracting groups of passengers that present a continuing need to be transport ed for instance, patients under acute care settings. This shows that the company is innovative and not afraid to experiment. Goodwill Considering its vast experience and time spent in this industry, Southwest is reaping the element of goodwill as can be seen from its loyal passengers. Loyalty programs with cards and air miles are common in the airline industry, but Southwest also has an advantage in its flexible ticket policies including refunds, transfers, carry forward and