A small diner is open for lunch each day. The lunch counter seats a maximum of 12 customers at one time. The average time required for a customer to complete lunch 30 minutes. It takes 4 minutes of a server’s time to take care of a customer. There are two servers assigned to the counter. The cook in the kitchen can prepare an order in 1.5 minutes. Answer the following questions, assuming the diner is relatively full and operating (i.e., you are not at the start-up time).

What is the constraint in the diner? Show your work to support your answer

If the average meal costs $10 and the variable cost is $3 per meal, what is the maximum throughput (production capacity) of the diner per hour?

A new advertising campaign is estimated to increase the number of customers to 36 customers per hour. What are some ways the diner can accommodate this increase.

National Aluminum Products Company is a state owned enterprise. Its main product is PVC pipes manufactured through extrusion process. The company is catering for the needs of the country for PVC articles, particularly in sanitary work. The company has just enhanced its capacity to 450 units per day. The average selling price of PVC pipes is computed to be OMR 25 per unit. Given below is the company’s last year revenue and cost information:

a) Compute the break-even point for last year.

b) Assume that if the company spends 23000 OMR on additional marketing, the company can sell the unit at 5% higher price. Keeping other cost pattern the same, what will be the new break-even point?

c) Assume that there are 260 working days in a year, what will be the after tax profit, if the company operates at its full capacity?

d) How many units the company must sell, if the management sets the next year target an after tax profit of OMR 480,000?

e) What will be the margin of safety, if the company is able to sell its full capacity?

1. Assume x and y are functions of t. Evaluate dy/dt with 4xy-5x+6y^3=-126, with dx/dt=-18, and x=6,y=-2

2. A retail store estimates that weekly sales and weekly advertising costs x​ are related by s=50,000-30,000e^-0.0004x. The current weekly advertising costs are ​$2,500​, and these costs are increasing at a rate of ​$400 per week. Find the current rate of change of sales per week.

3. Use implicit differentiation to find y’ for the equation below and then evaluate y’ at the indicated point, (-4,4). y^2+5y+9x=0

4. Find the indicated derivative and simplify. Y’ for y=3x-8/x^2+6x

5. Use implicit differentiation to find y’ and evaluate y’ at ​(-2​,-3​). 3xy+y-15=0

6. f(x)=8√ 2x^2+3

7. The demand x is the number of items that can be sold at a price of​ $p. For x=p^4-6p+1000, find the rate of change of p with respect to x by differentiating implicitly. The rate of change of the price p with respect to the demand x is?

8. Suppose that for a company manufacturing​ calculators, the​ cost, revenue, and profit equations are given by C=80,000+30x, R=200x-x^2/20, where the production output in 1 week is x calculators. If production is increasing at a rate of 600 calculators per week when production output is 4,000 calculators. Find the rate of increase in​ cost, revenue, profit.

1a. A small diner serves sandwiches and beverages. Which of the following is a variable cost with respect to the number of customers?

a. Rent

b.Soda

c.New dishwasher

d.All of the above

1b. A firm manufactures luxury automobiles. Which of the following is a product cost?

a.CEO salary

b.Sales commissions

c.Advertising

d.Windshields

1c.Within the relevant range, variable costs can be expected to:

a.increase on a per unit basis as the activity level decreases.

a.remain constant in total as the activity level changes.

c.increase on a per unit basis as the activity level increases.

d.vary in total in direct proportion to changes in the activity level.

1d.Which of the following is true at a firm's break-even point?

a.Profit is zero

b.Total revenue equals total cost

c.Total contribution margin equals total fixed cost

d.All of the above

1e.A corporation has provided the following contribution format income statement

Sales (1,000)                                 $50,000
Variable expense       $32,500
Contribution margin              $17,500
Fixed expenses                             12,250
Net Operating Income            $ 5,250

The break-even point in unit sales is closest to:

a.0 units

b.895 units

c.650 units

d.700 units

1f.A company has the following information:

Income tax rate                        25%
Selling price per unit         $8.00
Variable cost per unit       $5.00
Total fixed costs      $100,000

The contribution margin per unit is:

a.$3.00

b.$2.00

c.$5.00

d.$8.00

The December 31, 2019 statement of financial position of Howson Limited (Howson) showed Trade Accounts Receivable of $450,000 and a credit balance in Allowance for Doubtful Accounts of $45,000. During 2020, the following transactions occurred: Total service revenue of 2,000,000 was recognized of which 75% was billed on account; collections from customers totaled $1,300,000; accounts written off totaled $37,000; and previously written off accounts of $4,000 were collected.

Required

a) Journalize the 2020 transactions. (6 marks)

b) If the company uses the percentage of receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 5% of trade accounts receivable, prepare the adjusting entry at December 31, 2020?
   c) Management of Howson wants to show the highest possible net income for the year ended December 31, 2020. The president states, “one of my competitors told me that using % of credit sales method in determining our bad debt expense would increase the Company’s net income. Our industry average % of 2.4% is very reflective of our bad debt experience.”

    Required:

     The president of Howson has two questions she would like addressed.

1. First, would you recommend Howson adopt this method. (2 marks)

2. Secondly, regardless of your recommendation in (i), what amount would the net book value of the Accounts Receivable show on Howson’s Balance Sheet if the method were adopted?

Mr. and Mts. Patel, local golf stars, opened the Patel Chip‐Shot Driving Range Company on March 1, 2020. They invested $25,000 cash and received common stock in exchange for their investment.

A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf clubs. The Patels leased five acres of land at a cost of $1,000 per month and paid the first month's rent. During the first month, advertising costs totaled $750, of which $150 was unpaid at March 31, and $400 was paid to members of the high‐school golf team for retrieving golf balls.

All revenues from customers were deposited in the company's bank account. On March 15, the Patels received a dividend of $1,000. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,900. The Patels thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to net income of $2,450. Instructions

a. How could the Patels have concluded that the business operated at a loss of $6,100? Was this a valid basis on which to determine net income?

b. How could the Patels have concluded that the business operated at a net income of $2,450? (Hint: Prepare a balance sheet at March 31.) Was this a valid basis on which to determine net income?

c. Determine the actual net income for March.

d. What was the revenue recognized in March?

This question was posted yesterday... the responses (all) provided for requirement 1 was incorrect... I am reposting for assistance....

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2018, appears below

The following balance sheet information also is available:

In addition, the following transactions took place during the year:

Common stock was issued for $102,000 in cash.

Long-term investments were sold for $51,000 in cash. The original cost of the investments also was $51,000.

$81,000 in cash dividends was paid to shareholders.

The company has no outstanding debt, other than those payables listed above.

Operating expenses include $31,000 in depreciation expense.

Required:
1. Prepare a statement of cash flows for 2018 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities.
2. Prepare the cash flows from operating activities section of Diversified’s 2018 statement of cash flows using the indirect method.
  

Value chain system involves many interrelated activities to produce a product or service to a consumer. The aim is to reduce cost and increase visibility and sales. To do that all channels in the system must be synchronized. It starts with the supplier side for input, production or availability of products and service by the company and ends with distributing channels.

One of the major primary activities for Walmart is inventory management through efficient flow of stocks. By maintaining efficient management of stock Walmart can ensure loss of revenue because people who purchase items must have access to all items that they are looking for. It can set order level for critical items. Electronic tracking systems can be used and there are technologies that monitor the level of stock when people make purchase at the store.

Support activities include human resource management, maintaining good relationship with suppliers, technological development and infrastructure. Amazon has become a dominant force because it uses technology efficiently. What Walmart can do here expand its presence technologically and develop creative ways of delivering items for customers. One good initiative that I observed with Walmart is ordering online and piking items at stores, which will save time for consumers. Plus, it can use to efficiently forecast sales and arrange supply of products in efficient manner.

Do you agree with the posted above? why?

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $6,000.
2. The common stock of Byrd Corporation was purchased for $2,000 as a long-term investment.
3. Property was acquired by issuing a 14%, seven-year, $20,000 note payable to the seller.
4. New equipment was purchased for $20,000 cash.
5. On January 1, 2018, bonds were sold at their $25,000 face value.
6. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
7. Cash dividends of $13,000 were paid to shareholders.
8. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $9,000.

Required:
Prepare the T-accounts for Dux Company.

You determine the format. I would like you to use some computer application, not pen and paper. I would suggest WORD for any analysis comments and EXCEL for any spreadsheet analysis (Horizontal/Vertical) You are analyzing a company from a financial standpoint and comparing them to another company. Make it easy for us to read and understand. Make a recommendation to deal with this company or not based on your analysis. Choose a company from the following public companies. That means they trade their stock on a major stock exchange to anyone. TARGET, COSTCO, MACYS, NORDSTROM, WALLMART, CVS, ALBERTSONS (includes Safeway), AMAZON, OR KOHLS. Go to the company website to get the full financial information. Or just google the company name and 10K. The 10K or the earnings release at the fiscal year end has the financial results. YOU MUST USE A FULL YEAR INCOME STATEMENT. For most you should be able to find the 2019 10K. If not, use the 2018. Look at the Income statement, and balance sheet. If you want to know what the company says about its financial results read the latest financial statement released by the company.

1. Do a Horizontal analysis of the Income Statement and Balance Sheet and a Vertical analysis of the Income Statement using 2019 and 2018 or 2018 and 2017. If you can download into EXCEL that would work great for this. If not, input the numbers into EXCEL or some other spreadsheet program.

2. Tell me a little about the company.What does the company do? What do they sell?Where are they incorporated? Where is their headquarters? Who are their auditors?Who else is in this business? Who are the competitors?Look at their Statement of Cash Flows – did cash go up since last year or down. What caused the largest increases, largest decreases? List the top 3 things causing cash to go up and 3 causing cash to go down.Do the have a positive net income, is it higher than last year? What are the big changes on the income statement from last year?How do they account for inventory – FIFO, LIFO, or Weighted Avg?How do they depreciate their physical assets, straight line or other?Do they have any unearned or deferred revenue?Is their current ratio higher or lower than last year?What is their stock price per share? Is it higher or lower than a year ago?If you could ask the company president 3 questions, what would they be?

3. Choose a second company from the list above. These are all merchandise companies so choose any one you want. Some might have very big differences in their financials because some sell high volume at lower prices and some sell lower volume at higher prices. Analyze the financial results of the 2 companies side by side including the following: (For this, you will need to find the last full year of financial results for your second company, either 2019 or 2018) Current RatioDebt ratio?Quick ratio (to be discussed in class)How much cash do they have? Gross Profit – some don’t calculate it – if so, skip.Profit Margin (Net Income divided by Net Sales or Revenue)Accounts Receivable Turnover, Average days to collect (365/AR turnover)Inventory turnover. How many times in a year do they turn over inventoryWhat is their earnings per share? Or loss?What is their P/E ratio (use a current stock price, like May 15th)If you had the $$$ to invest, which company would you invest in?