Summary

The cost of renting a room at a hotel is, say $100.00 per night. For special occasions, such as a wedding or conference, the hotel offers a special discount as follows.

If the number of rooms booked is:

• at least 10, the discount is 10%
• at least 20, the discount is 20%
• at least 30, the discount is 30%

Also if rooms are booked for at least three days, then there is an additional 5% discount.

Instructions

Write a program that prompts the user to enter:

1. The cost of renting one room
2. The number of rooms booked
3. The number of days the rooms are booked
4. The sales tax (as a percent).

The program outputs:

1. The cost of renting one room
2. The discount on each room as a percent
3. The number of rooms booked
4. The number of days the rooms are booked
5. The total cost of the rooms
6. The sales tax
7. The total billing amount.

Your program must use appropriate named constants to store special values such as various discounts.

Since your program handles currency, make sure to use a data type that can store decimals with a precision to 2 decimals.

Q5. You are a theater owner fortunate to book a summer box office hit into your single theater. You are now planning the length of its run. Your share of the film’s projected box office is

R = 10 W -0.25 (W)^2, where R is in thousands of dollars and W is the number of weeks that the movie runs. The average operating cost of your theater is AC =MC = $5 thousand per week.

1. To maximize your profit, how many weeks should the movie run? What is your profit?

You realize that your typical movie makes an average operating profit of $1.5 thousand per week. How does this fact affect your decision in part a above if at all?

- Factory supervisors’ salaries -> product cost or period cost and why?

- Speakers used in Sony home-theater systems -> variable or fixed cost and why?

- Insurance costs related to a Mary Kay Cosmetics' manufacturing plant -> variable or fixed cost and why?

Magical Elves Theater

Magical Elves Theater is located in the Brooklyn Mall. A cashier’s booth is located near the entrance to the theater. Three cashiers are employed. One works from 1–5 p.m., another from 5–9 p.m. The shifts are rotated among the three cashiers. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier’s shift.

After purchasing a ticket, the customer takes the ticket to an usher stationed at the entrance of the theater lobby some 60 feet from the cashier’s booth. The usher tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the usher.

At the end of each cashier’s shift, the theater manager removes the ticket rolls from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. The manager also sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company’s accounting department. Receipts from the first shift are stored in a safe located in the manager’s office.

Required:

1. Identify the measures in place to make sure that the cash receipt transactions are properly accounted for.
2. If the usher and cashier decide to collaborate to misappropriate/steal cash, what actions might they take?

Hasagama Middle School

Hasagama Middle School wants to raise money for a new sound system for its auditorium. The primary fund-raising event is a dance at which the famous disc jockey D.J. Rivet will play classic and not-so-classic dance tunes. Will Schuester, the music and theater instructor, has been given the responsibility for coordinating the fund-raising efforts. This is Will’s first experience with fund-raising. He decides to put the eighth-grade choir in charge of the event; he will be a relatively passive observer.

Will had 500 unnumbered tickets printed for the dance. He left the tickets in a box on his desk and told the choir students to take as many tickets as they thought they could sell for $5 each. In order to ensure that no extra tickets would be floating around, he told them to dispose of any unsold tickets. When the students received payment for the tickets, they were to bring the cash back to Will and he would put it in a locked box in his desk drawer. Some of the students were responsible for decorating the gymnasium for the dance. Will gave each of them a key to the money box and told them that if they took money out to purchase materials, they should put a note in the box saying how much they took and what it was used for. After 2 weeks the money box appeared to be getting full, so Will asked Luke Gilmor to count the money, prepare a deposit slip, and deposit the money in a bank account Will had opened.

The day of the dance, Will wrote a check from the account to pay the DJ. D.J. Rivet, however, said that he accepted only cash and did not give receipts. So Will took $200 out of the cash box and gave it to D.J. At the dance Will had Mel Harris working at the entrance to the gymnasium, collecting tickets from students, and selling tickets to those who had not prepurchased them. Will estimated that 400 students attended the dance.

The following day Will closed out the bank account, which had $250 in it, and gave that amount plus the $180 in the cash box to Principal Foran. Principal Foran seemed surprised that, after generating roughly $2,000 in sales, the dance netted only $430 in cash. Will did not know how to respond.

Required: Identify as many cash control weaknesses/ improper handling of cash as you can in this scenario, and suggest how each can be addressed.

John is thinking to open a restaurant. He will run it only 1 year. Initial cost for opening a restaurant is 100k. Restaurant will generate EBIT of 200k at the end of year for sure. Risk-free rate is 5%. Tax rate is 35%.

1. (a) Suppose John’s current wealth is 20k. He can borrow money from a bank. Bank knows that his restaurant will generate EBIT of 200k at the end of year for sure.

   1. In this situation, would he want to open the restaurant? What is the value of his equity of the restaurant (at t=0) if he opens it? (0.8pt)

   2. If he opens the restaurant at t=0 and sell entire ownership of the restaurant to Peter at t=0, with what price can John sell the ownership? How much return did John make relative to his investment at t=0? (0.8pt)

2. (b) Suppose John has enough wealth to cover the initial cost of 100k. Assume that he can’t borrow money.

   1. In this situation, would he want to open the restaurant? What is the value of his equity of the restaurant (at t=0) if he opens it? (0.8pt)

   2. If he opens the restaurant at t=0 and sell entire ownership of the restaurant to Peter at t=0, with what price can John sell the ownership? How much return did John make relative to his initial investment at t=0? (0.8pt)

(c) Suppose John has enough wealth to cover the initial cost of 100k and opened the restaurant at t=0 by paying the initial cost with his own money. Then, he decided to lever up his restaurant. To do so, he borrowed 80k from a bank with interest rate of 5%. That 80k goes to John’s pocket.

a. What is his restaurant equity value now? (0.8pt)
b. What is his total wealth now (at t=0) including the debt proceed of 80k? (0.8pt) c. Was it a good decision relative to part.b.a? (0.8pt)

d. After levering-up, John decided to sell his equity to Mike. With what price, can John sell the ownership? How much return did John make relative to his initial investment at t=0? (0.8pt)

4. (d) Suppose John has enough wealth to cover the initial cost of 100k and opened the restaurant at t=0 by paying the initial cost with his own money. Then, he decided to lever up his restaurant. But he only wants to borrow with the risk-free rate, 5%. Bank knows that his restaurant will generate 200k at t=1 for sure.

   a. What is maximum amount of money John can borrow to lever-up his restaurant? (0.8pt)

   b. If he does borrow the maximum amount, what is value of his restaurant? What is equity value of restaurant? (0.8pt)

   c. How much money did John make relative to his initial investment by levering-up this way? How much return did John make relative to his initial investment? (0.8pt)

5. (e) Suppose John has 0 wealth. Bank knows that once his restaurant is open, it will generate 200k at

t=1 for sure.

1. What is maximum amount of money John can borrow from bank? (0.8pt)

2. Can he open the restaurant? (0.8pt)

3. If your answer to (e).b is yes, would he open the restaurant? (0.8pt)

4. Does his wealth increase by opening the restaurant at t=0 by borrowing the maximum amount of money? If so, how much does it increase? (0.8pt)

Compensation to a customer when overbooking happens is an expense, right?

A friend of mine that booked a hotel on a site, notified her that there was an overbooking. The site compensated her by giving her a 5 start hotel instead. Compensating her by upgrading her hotel. The site probably paid the amount left that needed to be paid. In order to compensate my friend, right? This cost would go into the site's expense cost?

home / study / business / finance / finance questions and answers / margaritaville hotel properties is opening a new beach resort in tybee island, ga at a cost ... Question: Margaritaville Hotel Properties is opening a new beach resort in Tybee Island, GA at a cost of $2... Margaritaville Hotel Properties is opening a new beach resort in Tybee Island, GA at a cost of $250 Million in year 0. The hotel is expected to operate for 20 years and at the end, be sold for approximately $500 Million in year 20. As an investment the hotel expected to earn $27 Million per year (including $20 Million in year 20). With a discount rate of 8% and reinvestment rate of 8%, analyze the projects feasibility using: Payback  Discounted Payback  NPV  IRR  Profitability Index  MIRR It turns out, you forgot that the franchise company that licenses the Margaritaville name will require the hotel owners to renovate the hotel property in year 10. This will result in significant room closures and a significant capital investment. Therefore, cash flows in that year 10 are expected to be -$5 Million. Using MIRR, what did you get for a rate of return?

AdventureParks Ltd is evaluating the construction of a new theme park. The theme park would cost $ 495 ​million, but would operate for 20 years. AdvertureParks expects annual cash flows from operating the theme park to be $ 70.6 million and its cost of capital is 12.0 %.

a. Prepare an NPV profile of the purchase.

b. Identify the IRR on the graph.

c. Should AdventureParks go ahead with the​ purchase?

d. How far off could​ AdventureParks' cost of capital estimate be before your purchase decision would​ change?

Otay Lakes Park is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017.

Instructions

(a)  

Determine Otay Lakes Park's net income for 2017.

(b)  

Prepare a retained earnings statement and a balance sheet for Otay Lakes Park as of December 31, 2017.

(c)  

Upon seeing this income statement, Walt Jones, the campground manager, immediately concluded, “The general store is more trouble than it is worth—let's get rid of it.” The marketing director isn't so sure this is a good idea. What do you think?

Financial controller of the Mondavi Hotel has the following information about estimated sales revenue and operating expenses for September, October and November.

The controller knows that cash sales are 30% of total sales and remaining sales are on credit. For the collection of credit sales, 50% are collected in the month of sales while the remaining 50% is collected in the following month. Mondavi Hotel pays 60% of the operating expenses in cash in the month they incur and remaining 40% is paid in the following month. In addition to this information, the controller is informed that:

• In October, Mondavi Hotel will replace the range in the main kitchen, which will cost $14,000 and will be paid in cash immediately.
• Each month, $20,000 will paid to a national bank to reduce an outstanding long-term debt.

Mondavi Hotel uses cash receipts and disbursement method for cash budgets.

Given the information:

If the beginning cash balance for October is $150,000, what would be the ending balance in October?