On July 1, 2000, TIM, Inc. started as a business entity. A summary of transactio

Question

On July 1, 2000, TIM, Inc. started as a business entity. A summary of transactions through December 31, 2000 is presented below. 1. Stockholders invested $50,000 in cash in Bank Boston in the name of the business. 2. New computer equipment is purchased for $6,000 in cash. Equipment will be used for 3 years. 3. Office rent for half a year is paid in advance, $8,000. 4. Dividends of $500 paid to existing shareholders. 5. Paid $10,000 to employees for services provided. 6. Paid utility bills, $2000. 7. Provided (and completed) design services on account to customers, $30,000. 8. Collected cash of $2,000 for services billed in 7. Required: a) Prepare a tabular analysis of the transactions using the Balance Sheet Equation (BSE) through December 31, 2000. Be sure to label your transactions. b) Prepare the balance sheet as of December 31, 2000. From what part of the BSE table did you get the information to prepare the balance sheet? c) Prepare the income statement for the period from July 1, 2000 through December 31, 2000. From what part of the BSE table did you get the information to prepare the income statement? d) How much cash flowed in and out of TIM, Inc. in the period from July 1, 2000 through December 31, 2000? How much of this cash inflow or outflow do you consider relevant to TIM, Inc.

Explanation / Answer

The biggest misconception about your military compensation is that popular changes can be accomplished by simply revising governing instructions. The truth is that each element of the TMCP is authorized by specific legal authority, generally found in Titles 37 and 10 of the United States Code. These elements are either legal "entitlements" earned by you, the Sailor, or are discretionary under the law, meaning the Secretary of the Navy (SECNAV) has the option of payment. Resolving your pay problems Almost all your pay problems or questions can be resolved by using your chain of command. Most commands have copies of the two major entitlement manuals: the Department of Defense Financial Management Regulation (DODFMR), Volume 7A and the Joint Federal Travel Regulations. For those commands that are serviced by a Personnel Support Detachment (PSD), share your pay problem with your command's local PSD Liaison Representative (PLR). Let your PLR work with you to resolve your pay problems. When the answer can't be resolved locally, have your appropriate chain of command representative call either the Defense Finance Accounting Service, Cleveland Center (DFAS-CL), or the applicable pay expert at BUPERS for the right policy decision. Personal Statement of Military Compensation (PSMC) You can ascertain the total dollar value of your TMCP. The tool for accomplishing this is the Personal Statement of Military Compensation (PSMC). The current PSMC program software can be found on the Navy's BUPERS ACCESS Bulletin Board System. The DOS-based PSMC program software is available for download under the MAIN MENU on BUPERS ACCESS. See your Command or Divisional Career Counselor to get the current PSMC. Using your Leave and Earnings Statement (LES) as the input document, you can generate the PSMC printout. The one-page PSMC printout will clearly itemize your direct cash compensation (cash pays and allowances, in-kind housing or food allowances, federal tax advantages) and the dollar value of current benefits (Morale, Welfare and Recreation, health care, leave/holidays and commissary/exchange) and future benefits (retired pay, Social Security and active-duty death/survivor benefits). The PSMC program software also generates a supplementary explanation printout that briefly describes each pay and allowance you receive and details how the cost of current and future benefits are calculated. Key TMCP elements With some of the compensation system's peculiarities explained and with your own PSMC in hand, it's now time to briefly explain some of the key elements of your TMCP. Basic pay Every Sailor receives basic pay to underscore the long-standing compensation principle of "equal pay for equal work." It is roughly 70 percent of your annual direct cash compensation and varies according to your pay grade and time in service (15 different longevity pay raises). The basic pay table is structured to give you the incentive to seek promotion (increased leadership and responsibility) and to recognize that as your experience increases within the same pay grade, so should your basic pay incrementally to reward your increased rating competency level. Basic pay for active-duty personnel is the basis for computing Reserve component drill pay and for establishing the initial levels of retired pay. Consult Chapters 1 and 2 of the DODFMR for more detailed information on basic pay.

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