The Tower Hotel has two operating departments: Rooms and F&B. 69% of the hotel’s total revenue is earned from room sales and the remaining revenue is earned from F&B sales. Rooms department’s contribution margin ratio is 65% and F&B department’s contribution margin ratio is 54%. If the fixed cost of the hotel is $411,206, and the management is targeting a before-tax profit of $146,476, what is the required sales revenue? (Rounded to whole numbers)

The most common scheme type used in financial statement fraud involves manipulation of revenue figures. Schemes to manipulate revenue figures typically involve posting sales before they are made or prior to payment. Examples include recording product shipments to company-owned facilities as sales, re-invoicing past due accounts to improve the age of receivables, Pre-billing for future sales and duplicate billings.

How easy or hard is it to manipulate the revenue figures? Why? Anyone?

6. The following data represents a company’s revenue in millions of dollars. Year: 2010 2012 2014 2015 2016 2018 2019 Revenue: 30 32 34 35 39 39 45 Let the year 2010 be the base year with x=0.

a) Model the data with a linear function using the points in years 2010 and 2019. Round computed values to 2 decimal places. Also, using your model predict the revenue in the year 2021 accurate to 3 decimal places.

b) Set up a table of (x, y) values to be used for a least squares model and find a linear least squares model y ax b = + for the data. Express the coefficients a and b accurate to 3 decimal places. Also, what is the 2 R value accurate to 3 decimal places?

c) Use your least squares model to predict the revenue in 2020 accurate to 3 decimal places and graph the actual and predicted revenue data superimposed on the same graph.

Morris Company had the following adjusted trial balance:

Additional Resources

The president of Morris Company has asked you to close the books (prepare and process the closing entries).

Required:

After the closing process has been completed, answer the following questions:

The firm’s revenue function is R=250q-8q² , cost function is C=10q+12q².

1. Use Excel to calculate the firm’s revenue, cost, and profit for q = 1 to q = 20 in increments of 1.Using Excel’s Charting tool, draw the graph of the profit curve and determine the profit maximizing level of output.

2. Based on these calculations, what output must you choose? Create columns in spreadsheet for MR and MC and verify that MR = MC at the profit-maximizing output level.

3. Now assume that you hire a manager who is paid 10% of the revenue and the manager wants to maximize revenue as well. How much output does the firm produce now? What is marginal revenue at this output level?

4. Now suppose that the firm is acquired and managed by a philanthropist who wants to promote recycling of used computers and therefore produces as much output as possible as long as the firm does not make losses. What output does the firm produce now?

True/False? If False, Why?

1_General obligation bonds are less restrictive than revenue backed bonds with few limitations regarding the amount that can be issued.

2_When issuing revenue backed bonds, receipts from all issuing governments sources are pledged to pay the interest and principal back to the bond purchasers.

3_The theory of tax expenditures is what drives the rationale for investors to purchase State/local bonds of either type (general obligation/revenue backed)

4_The Federal American Recovery Act, signed into law by President Obama, provided a mechanism that achieved the goals of federal grant policy by correcting for externalities and providing for a macroeconomic stabilizing mechanism.

5_Intergovernmental grants do not provide a mechanism in which you can effectively substitute the granting government’s tax revenue for that of the recipient government.

6_Financing government expenditure through a user fee is similar to tax financing because in both revenue streams there is always a direct relationship between the amount of payment and the level of service received.

For this assignment, conduct research to analyze industry related data that would support financial projections for your revenue-generating idea. Complete a series of financial worksheets in order prepare for one of the selected revenue-generating opportunities identified in the previous assignment. Developing cost assumptions is critical for determining short-term and long-term financial needs for your revenue generation idea. You must consider all costs associated with the development and implementation of your idea. Develop multiple financial spreadsheets that consider factors such as materials, equipment, employees, indirect costs, and pricing strategies to develop a profit from the event or idea. The desired outcome is to determine the value of your revenue-generating idea and identify costs incurred for developing and implementing the idea. You should have two separate financial spreadsheets labeled 'Costs" and "Pricing." The following should be addressed: Costs and pricing associated with revenue generating idea. Question: Are we talking financial statements or simple spreadsheets?

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows: Service Revenue Collections Pretax Accounting Income 2017 $ 610,000 $ 590,000 $ 150,000 2018 710,000 720,000 215,000 2019 675,000 650,000 185,000 2020 660,000 685,000 165,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%. (Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.) Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup’s 2019 income taxes and Alsup’s 2020 income taxes.

A statistical program is recommended.

A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to increase their annual revenue by approximately $10 million over the past 10 years. But increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown.

(b)

Using Minitab or Excel, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.)

T_t =

(c)

Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.)

$  million