Questions
At the beginning of 2017, Swifty Construction Company changed from the completed-contract method to recognizing revenue...

At the beginning of 2017, Swifty Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2017, pretax income under the two methods was as follows: percentage-of-completion $114,600, and completed-contract $84,000. The tax rate is 40%. Swifty has a profit-sharing plan, which pays all employees a bonus at year-end based on 2% of pretax income.

Compute the indirect effect of Swifty’s change in accounting principle that will be reported in the 2017 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers.

ANSWER 612

In: Accounting

Carpenter Manufacturing Corporation produces highly specialized technical equipment, which is manufactured in the Product Construction department...

Carpenter Manufacturing Corporation produces highly specialized technical equipment, which is manufactured in the Product Construction department and tested in the Product Evaluation department. Carpenter has 1 Direct Cost Category (direct materials); 1 Indirect Cost Category (conversion costs); and wishes to compare the Weighted Average versus the FIFO methods of Process Costing.

Data for the Product Construction department for March 2012 is as follows:

Work In Process, March 1: Physical Units 5,858; Direct Materials (96% complete) $702,369; Conversion Costs (52% complete) $214,069

Work added to Production during March: Physical Units 13,925; Direct Materials $2,158,989; Conversion Costs $1,252,622

Work In Process, March 31: Physical Units 1,165; Direct Materials (79% complete) $ ? ; Conversion Costs (36% complete) $ ?

Compute the Total Cost of the Ending Work In Process Inventory (Weighted Average) in the Product Construction department.

In: Accounting

You are designing a slide for a water park. In a sitting position, park guests slide...

You are designing a slide for a water park. In a sitting position, park guests slide a vertical distance h down the water-slide, which has negligible friction. When they reach the bottom of the slide, they grab a handle at the bottom end of a 6.00-m-long uniform pole. The pole hangs vertically, initially at rest. The upper end of the pole is pivoted about a stationary, frictionless axle. The pole with a person hanging on the end swings up through an angle of 72.0∘, and then the person lets go of the pole and drops into a pool of water. Treat the person as a point mass. The pole’s moment of inertia is given by I=1/3ML^2 where L = 6.00 m is the length of the pole and M = 31.0 kg is its mass. For a person of mass 70.0 kg, what must be the height h in order for the pole to have a maximum angle of swing of 72.0∘ after the collision?

In: Physics

What is the management fee (1) on a per available room basis and (2) as a...

What is the management fee (1) on a per available room basis and (2) as a percentage of total revenue for a 255-room hotel located in California that had an occupancy level of 62%, ADR of $84.53, a room revenue to total revenue % of 56.4%, and a gross operating profit % of 24.8%? The management fee agreement stipulated that the company would receive 3% of gross revenue, and 10% of gross operating profit.

1. lease use the information from Question 10 to calculate the Total mgmt fee.

               Total mgmt fee (round to whole number) $ ___

2. Please use the information from Question 10 to calculate the Mgmt fee on PAR basis.

            Mgmt fee on PAR basis (round to two decimal places) $ ___ PAR/yea

In: Finance

A Developer plans to start construction of a building in one year if at that point rent levels make construction feasible.

PLEASE ANSWER IN EXCEL WITH CALCULATIONS. 

A Developer plans to start construction of a building in one year if at that point rent levels make construction feasible. At that time the building will cost 1,000,000 to construct. During the first year after construction would take place, there is a 60 percent chance that NOI will be 150,000 and a 40 percent chance that the NOI will be 75,000. In either case, NOI would be expected to increase at 2 percent per year after the first year. How much should the developer be willing to pay for the land if he wants a 12 percent rate of return?

In: Finance

Dorothy Goldman's Star Inn has ahcieved moderate success for the past 5 yeatd, as it had...

Dorothy Goldman's Star Inn has ahcieved moderate success for the past 5 yeatd, as it
had an ADR in five of $60 ADR and paid occupancy of 75%. Yet she wonders if her rooms-
only lodging facility with 100 rooms might do even better if it was part of a franchised
system. Willie Hernandez from the Quintinilla Loding Chain (QLC) suggests that her hotel
would benefit from a francisee with QLC.
Through careful study, Dorothy has gathered the following informatiom:
1. The initial fee with QLC of $50,000 will be paid at the signing of the franchise agreement.
For tax purposes, the intial fee would be amoritized over a 5-year period at $10,000 a year.
2. The paid occupancy percentage is expected to increase by 2 percentage points, and ADR
is expected to increase $2 per room due to this association.
3. Advertising fees to be paid to QLC would be 2% of total gross room sales, while the
royalty fee would be 3% of total gross room sales.
4. The reservation fee is $5 per room per month for all 100 rooms.
5. Assume the variable costs other than those mentioned above are 50% of gross room
sales, and that fixed costs would be unchanged.
6. Assume and average tax rate of 30% for the Star Inn.
7. Assume the Star's Inn cost of capital is 12%
REQUIRED:
Based on the above information, should Dorothy Goldman sign on with QLC?

In: Finance

Explain why this statement is false: Since there are many hotels and many hotel customers in...

Explain why this statement is false: Since there are many hotels and many hotel customers in San Francisco, it is definitely appropriate to use the supply and demand model to analyze the market for hotel rooms in San Francisco. [Hint: Under what circumstances is the supply and demand model appropriate?]

In: Economics

Outline the three different parts of the Theme Park product. Explain why the product lifecycle of...

Outline the three different parts of the Theme Park product. Explain why the product lifecycle of the Theme Parks steeps early very quickly. Disney theme park product is the responsibility of “Disney Imagineers” who are they and what are interactive products? (give examples where possible)

In: Operations Management

Case Study: St Michael St Michael is a manufacturer of toiletry items based near Glasgow, Scotland....

Case Study: St Michael
St Michael is a manufacturer of toiletry items based near Glasgow, Scotland. It has been in business for the past ten years and has built a strong portfolio of customers. Most significantly, they are the sole suppliers of toiletry items such as shower gel, body lotion and shampoo/conditioner to various high end hotel chains throughout the UK.
They have research and development (R&D) and production departments which plan and manage the extraction of flowers and fruits, develop new odor or design and produce the high quality and nice taste gel, lotion and shampoo, etc. Their material is obtained from a series of local plant garden at Glasgow. The three other key materials required for production are their signature plastic bottles, travel pouches and cartons which obtained from the manufacturers in Leeds, England, and the wooden pallets on which the filled cartons are transported. These are produced for the organization by a pallet manufacturer who has established a pallet assembly operation on the organization’s site. In addition to the carton plant and pallet assembly operation, the site at Glasgow includes warehousing and storage facilities and management and administration offices.
The business is structured by various departments. These are Senior Management, Production, Transport and Warehousing, Sales and Marketing, Research and Development (R&D), Accounts and General Administration. Each department is headed by a departmental head who sits on the organization’s management board.
St Michael does not have its own delivery fleet, but contracts this function to a local haulier, who provides, as required, manned tractor units and curtain-sided trailers to transport the carton items direct to customers and also to collect and transport the new signature cartons from the supplier in Leeds. Neither St Michael nor the haulier has any experience of using containerization.
St Michael dispatches an average of 1000 pallets per week, which is almost 100,000 cartons. This carton pallet quantity requires between 10 and 15 trailers depending on loading levels.
They have currently been approached by one of their major customers, Crown Plaza Hotels, with a view to the hotel chain using St Michael toiletry items exclusively in their hotel chains outsides the UK. Crown Plaza Hotels operate in Canada, South Africa, Dubai, Hong Kong, Singapore and Malaysia, Australia and New Zealand.
Crown Plaza Hotels have accepted that introducing the product to their hotels will need to be phased in and happy to place the toiletry items in their Canadian hotels for a period of a year initially, and begin gradually introducing it in their hotels at all the other locations after this. They want all their hotel chains to be using St Michael toiletry items within three years.
By accepting this contract the organization would initially need to increase production by approximately 50%. Senior Management have agreed that this is possible. Eventually, when all the international locations are being served, the St Michael will have to had a increase production fivefold (500%).
The Production Department has discussed this scenarios with their bottle, pouch, carton and pallet suppliers. There is no issue with the pallet supplier increasing its delivery amounts, but the plastic bottle pouch and carton producer is running at full capacity and is unable to increase production. The Organization’s R&D department has identified a plastic bottle, travel pouch and carton manufacturer near Rome, Italy, who can supply exactly the same bottle, pouches and cartons in sufficient quantities and at an attractive cost.
The local haulier indicates that they are able to supply transport to and from UK dispatch and collection points, but are not prepared to run their fleet outside the UK. The Organization now requires to develop its ability to deliver the Crown Plaza Hotel Canadian contract and eventually the contract for the other international locations. There is no problem in increasing production and there is sufficient storage and warehousing space on their existing site. It is also relatively easy to appoint new staff with the required skills and experience to the Organization’s existing departments should this be needed.
However, the Organization has no experience of trading internationally and they need to address this.
To do this they have agreed to:
1. Establish an International Trade Department
2. Appoint a Physical Resource Manager to head this department
The board of management are considering appoint you as Physical Resource Manager. To ascertain your suitability for the role you have been asked to produce a report of approximately 1000 words which covers the following assignment.
1. Explain the various tasks which would come under your remit as Physical Resource Manager.
2. Explain how the International Trade Department would be structures and how this would benefit St Michael over a structure that did not include this department.
3. Describe the links that would operate between the International Trade Department and other departments within the organization.
4. Describe the links the International Trade Department would have with external integrating bodies and why these would exist.

In: Economics

The senior vice president for marketing at a Hotel believes that the company’s recent advertising of...

The senior vice president for marketing at a Hotel believes that the company’s recent advertising of the hotel has decreased the average room idle rate. To test the hypothesis, random sample of daily idle rates (in percentages) before the advertising is collected. A similar random sample of daily idle rates is collected after the advertising took place. The data are as follows.

Before (%) 8 17 12 21 19 10 After (%) 6 10 1 11 17 8

Is there evidence that the average room idle rate of the hotel has decreased after the advertising at the 0.01 level of significance.

In: Statistics and Probability