1. UEI BUSINESS OFFICE ADMINISTRATION
BUSINESS CALCULATIONS CAPSTONE PROJECT
•Name: Adan Vasquez
•Due Date: 3/5/2015
•Instructor: Frank Ezenekwe, MBA
©2015 Adan Vasquez UEI College

2. Percentage Increase in Value
How to Calculate Percentage Increase
Knowing how to calculate percentage increase is useful in a variety
of situations. For instance, in doing your tax return If you want to know
how to calculate percentage increase in no time at all, just follow these
steps:
Write down the
current value
and the starting
value.
Subtract the
starting
value from
the current
value.
Divide the
result by the
starting
value
Multiply the
result by
100.
Year 1: 400 400-450 50%400 0.125 x 100
Year 2: 450 = 50 =0.125 = 12.5%
©2015 Adan Vasquez UEI College

3. Payroll Deductions
What they are?
•Payroll deductions are amounts withheld from
an employee's payroll check, and these
amounts are withheld by their employer.
•Social Security and Medicare withholding.
•Federal Income Tax
•State income tax withholding.
•IRS(Internal Revenue Service).
What your paying for
• Social security and Medicare pays for
retirement and disability benefits.
• Federal Income Tax basically is
everything that funds the
government.
• State Income Taxes that affect our
everyday buildings, homes, and
governmental monuments.
• The IRS is also another tax to fund
government enforcement of the
laws.
©2015 Adan Vasquez UEI College

4. How to Calculate Property Tax
• Calculating the property tax on property based on
the assessed value.
1. Multiply the market value of the property by the assessed rate.
$400,000×50%= $200,000 assessed value
2. Determine the numbers of $100s in the assessed value.
$200,000÷$100=2,000
3. Multiply the number of $100s by the tax rate per $100 to determine the
amount of tax due.
2,000×$5.95=$11,900 property tax due
©2015 Adan Vasquez UEI College

5. How To File Tax Returns-1040
First we must obtain the sources of income
and family situations in order to determine
what kind of taxes you owe. Once we have filled
out all of the forms we send them electronically
to the IRS to receive the refund.
1.Calculate
the tax levied
on property
based on
assessed
value. For
property tax
2.Calculate the
Federal
income tax,
you will need
social security
# and fill out a
W4 form.
3. Fill out a
W2 form that
will show
Medicare ,
social
security, and
federal
income
withholdings
4.
Complete
a 1040
Form
©2015 Adan Vasquez UEI College

6. How to Calculate Tax Due & Tax Refund
1. Calculate the total income.
2. Calculate adjusted gross income by subtracting the $2000
IRA contribution from total income.
3. If medical expenses exceed 7.5% of adjusted gross income
amount can be deducted.
4. Find and subtract total itemized deductions.
5. Add all deductions and subtract from Withholdings.
6. With this amount use the tax table to find the tax due.
7. Then subtract this number to the Withholdings and that is
your refund.
©2015 Adan Vasquez UEI College

7. How Health & Life Insurance Works
• Health insurance provides protection against a portion of the costs
incurred due to illness or accident. They are a fee for fee service plans.
With these plans customers must file claims for each service provided.
• Life insurance pays out a sum of money either on the death of the insured
person or after a set period.
• Life Insurance depends completely on the plans you choose and eligibility,
for example age and the amount of coverage you want.
AGE Amount of Life
Insurance
Age Amount of Life
Insurance
Under 21 $50,000 51-55 $25,000
30-35 $45,000 56-60 $20,000
36-40 $40,000 61-65 $15,000
41-45 $35,000 66 and over $10,000
46-50 $30,000
©2015 Adan Vasquez UEI College

8. Automobile Insurance Accident Breakdown
States require motor vehicle insurance for
every motor vehicle owned. Some coverage are
collision coverage, medical payment coverage,
uninsured motorist coverage, and comprehensive
coverage.
1. Determine the compensation due after a motor vehicle
accident
2. Determine the premiums for homeowner’s insurance
3. Calculate the payment when a fire insurance policy
contains 80% coinsurance clause.
©2015 Adan Vasquez UEI College

9. The Purchasing Cycle & its various Elements
When a small business needs office supplies, it may order directly from a retail office supply
business or from a wholesaler. However, a large business may have many departments
requesting supplies. It is less expensive to buy in quantity because a discount is often given.
• A purchase requisition is an internal order form sent to the purchasing department from
another department, and used to control purchases by requiring a managers signature.
• A purchase order is a document issued by a buyer to a vendor listing products or services
wanted. The purchase order authorizes the vendor to ship the items or services and bill for
them at agreed prices and terms.
• An invoice is a record of the sales transaction showing the quantity of each item sold with its
individual price, any added charges or discounts, the total price, and the payment terms.
• A receiving report lists each item received and is prepared by the person or department that
receives the order when the merchandise arrives.
• A credit memorandum notifies the company they have received a credit on their account for
the amount of the returned merchandise.
• A voucher check is a detachable portion showing the invoice number being paid by the
check.
• A statement of account is a monthly statement showing transactions, balance, and credit.
©2015 Adan Vasquez UEI College

10. Summary
Business calculations capstone project has all the highlights and key terms you need
for calculating percentage increase in value, filling payroll deductions, property
tax, tax returns, tax due and refund, life insurance, automobile insurance, and
the purchasing cycle. Everything you need is in this PowerPoint.
©2015 Adan Vasquez UEI College