Revenues (Inflows)
(use a Pharmacy or doctor office as example please )
In: Operations Management
Information related to various financial statement elements is provided for two cases:
Case A Operating expenses were $500,000. Inventory increased by $72,000, accounts payable increased by $50,000, and prepaid rent decreased by $16,000.
Case B Sales revenue was $1,350,000. Accounts receivable decreased by $75,000 and unearned revenue increased by $46,000 during the year.
Required:
For each case, calculate the cash inflow or outflow related to the revenue or expense account.
In: Accounting
When a worksheet is prepared, which account would not be entered into the income statement columns?
Select one:
A.
Depreciation Expense
B.
Service Revenue
C.
Unearned Revenue
D.
Insurance Expense
In: Accounting
In: Economics
Based on your work experience or reading of the chapter, briefly describe how an ERP can connect and integrate the cycles of a business (e.g., revenue-expenditure cycles, revenue-payroll cycles, and etc)
In: Accounting
For the following two situations fully explain why the monopolist would increase or decrease output.
1. Marginal Revenue exceeds Marginal Cost
2. Marginal Cost exceeds Marginal Revenue
In: Economics
New revenue accounting standard impact: • What is the potential impact (old vs new) on their revenue recognition of the new standard on the company. It would be better if you provide the resources, websites are enough
In: Accounting
The adjusted trial balance for Ivanhoe Company is given
below.
| IVANHOE
COMPANY Trial Balance August 31, 2022 |
||||||||
|---|---|---|---|---|---|---|---|---|
|
Before |
After |
|||||||
| Dr. | Cr. | Dr. | Cr. | |||||
|
Cash |
$11,970 | $11,970 | ||||||
|
Accounts Receivable |
9,270 | 9,950 | ||||||
|
Supplies |
2,690 | 1,090 | ||||||
|
Prepaid Insurance |
4,470 | 3,050 | ||||||
|
Equipment |
16,000 | 16,000 | ||||||
|
Accumulated Depreciation—Equipment |
$3,600 | $4,800 | ||||||
|
Accounts Payable |
5,100 | 5,100 | ||||||
|
Salaries and Wages Payable |
0 | 1,810 | ||||||
|
Unearned Rent Revenue |
2,010 | 1,080 | ||||||
|
Common Stock |
18,750 | 18,750 | ||||||
|
Retained Earnings |
5,560 | 5,560 | ||||||
|
Dividends |
2,540 | 2,540 | ||||||
|
Service Revenue |
32,340 | 33,020 | ||||||
|
Rent Revenue |
12,420 | 13,350 | ||||||
|
Salaries and Wages Expense |
16,250 | 18,060 | ||||||
|
Supplies Expense |
0 | 1,600 | ||||||
|
Rent Expense |
16,590 | 16,590 | ||||||
|
Insurance Expense |
0 | 1,420 | ||||||
|
Depreciation Expense |
0 |
1,200 |
||||||
|
$79,780 |
$79,780 |
$83,470 |
$83,470 |
|||||
Prepare the closing entries for the temporary accounts at August
31. (If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. Credit account titles
are automatically indented when the amount is entered. Do not
indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
Aug. 31 |
enter an account title to close revenue accounts |
enter a debit amount |
enter a credit amount |
|
enter an account title to close revenue accounts |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to close revenue accounts |
enter a debit amount |
enter a credit amount |
|
| (To close revenue accounts) | |||
|
Aug. 31 |
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
| (To close expense accounts) | |||
|
Aug. 31 |
enter an account title to close income / (loss) |
enter a debit amount |
enter a credit amount |
|
enter an account title to close income / (loss) |
enter a debit amount |
enter a credit amount |
|
| (To close income / (loss)) | |||
|
Aug. 31 |
enter an account title to close dividends |
enter a debit amount |
enter a credit amount |
|
enter an account title to close dividends |
enter a debit amount |
enter a credit amount |
|
| (To close dividends) |
List of Accounts
In: Accounting
Caesars Palace® Las Vegas made headlines when it undertook a $75 million renovation.
In mid-September 2015, the hotel closed its then-named Roman Tower, which was last updated in 2001, and started a major renovation of the 567 rooms housed in that tower. On January 1, 2016, the newly renamed Julius Tower reopened, replacing the Roman Tower. In addition to renovating the existing rooms and suites in the former Roman Tower, 20 guest rooms were added to the Roman Tower. With the renovation completed, Caesars expects the Julius Tower room rate to average around $149 per night. This increase, a $25 or 20.2% increase, reflects, in part, the room improvements. Assume that the annual fixed operating costs for the Julius Tower in Caesars Palace® Las Vegas will be $5,000,000. This amount represents an increase of $200,000 per year compared to pre-renovation. Also assume that the variable cost per hotel room night after the renovation is $27; before therenovation, the variable cost per room night was $20. The contribution margin per room night after the renovation is $122; before the renovation, the contribution margin per room night was $129. The average hotel occupancy rate, in 2014, for Caesars Entertainment Corporation was 91.2%, according to its 2014 Form 10-K. By comparison, the average hotel occupancy rate in Las Vegas overall, for that same time period, was 86.8%, according to Stastia.com.
1. if Caesars has a target profit of $15,000,000, how much sales revenue does the company need to make to achieve its target profit? (Round interim calculations to the nearest whole percent and/or dollar. Round your final answer to the nearest whole dollar.)
A. $42,153,444
B. $29,845,345
C. $24,390,244
D. $15,852,843
2. If Caesars has a target profit of $15,000,000, how many rooms must the company occupy throughout the year in order to reach its target profit? (Round your answer up to the nearest whole room.)
A. $240,385
B. $134,229
C. $1122,951
D. $163,935
3. What is each room's contribution margin after the renovations?
A. $104
B. $122
C. $97
D. $129
In: Accounting
(1) Palo Alto is considering purchasing property in California
to build its corporate headquarters. The land had previously been
used by a manufacturing company, leaving the soil and groundwater
contaminated with hazardous waste. To use the property for its
needs, Palo Alto will pay for environmental remediation costs to
clean up the land. In addition to the purchase price of
$800,000, Palo Alto estimates these environmental cleanup costs
will be close to $300,000. Should they purchase the property, Palo
Alto wants to deduct the full cost of the environmental remediation
on this year’s taxes as a trade or business expense.
(2) Michael Smith has provided you with the current year’s income
statement for Palo Alto, Inc. In the below spreadsheet, reconcile
book income to taxable income.
| Palo Alto, Inc. | |||||
| Income Statement | |||||
| Current Year | |||||
| Book - Tax Adjustments | |||||
| Book Income/(Loss) | (DR) | Cr | Taxable Income | ||
| Revenue from sales | $64,800,000 | ||||
| Cost of Goods Sold | -45,600,000 | ||||
| Gross profit | $19,200,000 | ||||
| Other income: | |||||
| Interest income | 75,000 | (1) | |||
| Miscellaneous income | 80,000 | ||||
| Gross Income | $19,355,000 | ||||
| Expenses: | |||||
| Compensation | -9,630,000 | (2) | |||
| Stock option compensation | -350,000 | (3) | |||
| Advertising | -1,950,000 | ||||
| Repairs and Maintenance | -658,000 | ||||
| Rent | -857,000 | ||||
| Bad debt expense | -50,000 | (4) | |||
| Depreciation | -1,750,000 | (5) | |||
| Warranty expenses | -95,000 | (6) | |||
| Meals and entertainment | -60,000 | ||||
| Life insurance premiums | -25,000 | (7) | |||
| Federal income tax expense | -1,250,000 | ||||
| Other expenses | -350,000 | (8) | |||
| Total Expenses | -17,025,000 | ||||
| Net Income | 2,330,000 | ||||
| Notes | |||||
| (1) | Of the $75,000 interest income, $25,000 is from California State municipal bond. | ||||
| (2) | This includes total officer compensaiton of $2,950,000 (no one officer received more than $1,000,000 compensation). | ||||
| (3) | This amount is the portion of incenctive stock option compensation that was expensed during the year (recepiants are officers). | ||||
| (4) | Palo Alto wrote off $35,000 of its accounts receivable as uncollectible. | ||||
| (5) | Tax depreciation for the year was $2,300,000. | ||||
| (6) | In the current year, Palo Alto did not make any actual payments on warranties it provided to customers. | ||||
| (7) | Premiums on key employee life insurance policies | ||||
| (8) | This includes $10,000 of Politial Contributions. | ||||
In: Accounting