Collette’s S Corporation has a small amount of accumulated earnings and profits (AEP), requiring the use of the more complex distribution rules. Collette’s accountant tells her that this AEP forces the maintenance of the AAA figures each year. Assume you are the S Corporation’s accountant

a. Draft a letter to your client, identifying any relevant tax issues Collette faces. b. Offer any advice that you feel might be important to consider.

Casey communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. this action had no effect on the company's total assets or operating income. which of the following effects would occur as a result of this action? a. the company's current ratio increased. b. the company's times interest earned ratio decreased. c. the company's basic earning power ratio increased. d. the company's equity multiplier increased. e. the company's debt ratio increased.