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Green, Prakash, and Singh, LLP (GPS) is a law firm that has asked for your help

ID: 2582506 • Letter: G

Question

Green, Prakash, and Singh, LLP (GPS) is a law firm that has asked for your help in developing a billing and revenue collection database. The three partners, Sidney Green, Prem Prakash, and Rahul Singh, perform several types of legal services for corporations (the firm does not work for unincorporated individuals or partnerships), including general litigation, insurance defense, general corporate, and tax planning. Each partner has a different billing rate. The partners keep track of the time they work on cases by client and by type of services. They record time in six-minute (one-tenth of an hour) intervals. GPS sends bills to clients every Friday for the services rendered during the week ended on that Friday. Most clients pay at the end of each month, but some pay every week, and others run an unpaid balance from month to month and pay what they can when they are able. GPS does not apply cash receipts to specific invoices. List the events, re- sources, and agents (internal and external) that exist in the GPS sales/collection process. State any assump- tions you needed to make

Refer to the GPS case described in Problem 1, and create a diagram similar to that shown in Figure 8.2 for the GPS law firm. The diagram should show the entities you identified in Problem 1 along with the relation ships between those entities and their cardinalities.

Resources Events Sale (Delivery) Agents Inventory Employee Internal 1 Participation S-E- M Outflow M S-l External Participation S-C Duality Cash Account ash Receipt Customer 1 Inflow M M External CR-CA Participation CR-C Internal Participation CR-E

Explanation / Answer

Determine Jocson’s income or loss from the business. Do not include in this figure items that would not be included on his Schedule C but detail those items separately.

Calculate Jocson’s self-employment taxes assuming he has no other income subject to FICA taxes