Part I (1 PAGE)

Paul works is the Car Sales Director at Texas Car Dealership. Oftentimes, he takes customers and vendors out to lunch as part of his job. Texas Car Dealership typically reimburses Paul the cost of the meals. What are the tax issues both Paul and Texas Car Dealership must consider? What is your take on this arrangement?

Part II (1 PAGE)

Financial ratio analyses are conducted by managers, equity investors, and long-term creditors. Assume the role of a potential investor. Discuss the ratio(s) that would be the most beneficial for you to review and why.