The report disclosed that travelers who have run into huge hassles with airlines refusing to refund canceled flights, pocketing millions owed to consumers, and charging some fees even when they publicly announce they are waiving fees due to COVID-19. And some Airbnb landlords have denied refunds, even after the company said refunds would happen, because of a limited window when cancellations will be refunded. It has left many travelers out thousands of dollars for trips they will never reschedule. With the coronavirus crisis, airlines have imposed new policies that may violate federal rules.

So, The Transportation Department requires giving customers an option to take a full refund if the airline cancels a flight. Yet many airlines, U.S. carriers, as well as airlines flying to the U.S. covered by the same regulation, are offering only a voucher toward future travel. Why would the airlines think that such a policy could possibly work and what might their justification(s) be? Also, Nine U.S. senators recently sent letters to airline CEOs urging them to give customers full cash refunds for canceled flights “in light of the pressing need and unprecedented bailout” that the airline industry just got from Congress. Is this a reasonable request or an example of Congress “arm twisting” companies during an unprecedented financial crisis? Make points on both sides of the argument.

Consider following table - Convert it to 3NF

Consider the piston ring data in the following table. Assume that specifications are 74.00 ± 0.035 mm. Estimate the process capability (C_p and C_pk) using:

1. Sample Range Measurements
2. Sample Std Dev. Measurements

Convert the C_p found above into approximate dpm.

Inside Diameter Measurements (mm) for Automobile Piston Rings

SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 90 percent of its promotion costs on Gold customers to encourage their loyalty.

Required:

a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category.

SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 80 percent of its promotion costs on Gold customers to encourage their loyalty.

Required:

a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. (Do not round intermediate calculations.)

b. Which customers are more profitable?

Gold or Silver?   

Recently, the effects from Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) have been seen in most public firms. While many firms indicated that adoption of the new revenue recognition principle had no effect upon the timing of their revenue recognition, some firms indicated the new principle had significant effects upon their statements. For the firms where the new principle affected the timing of revenue, did the new revenue recognition principle speed or slow revenue recognition. Explain.

I) A company bills customers for services rendered on account. Which of the following is part of recording this transaction?

a) Decrese service revenue

b) Decrease cash ; c) Increase account receivable ; d) Increase Unearned revenue

II) Adjusting entries always impact the income statement and the cash account

True or False?

III) Denise's Donuts has 12 Employees who are paid $15 per houir. At December 31, 2016, each of Denise's Donuts's employees had worked 20 hours which had not been paid or recorded. prior to adjustments, the company's trial balance showed $171400 in the wages expenses account. If Denise's Donuts makes the appropriate adjusting entry, how much will be reported on the December 31,2016 income statement as wage expense?

a) $167,800

b) $ 175,000

c) $3,600

d)$173,992

IV) A company provides services to clients during the period that are neither paid for, nor billed ( Invoiced) to the clients. What must the company do?

a) Collect the cash owed from the customer in order to recognize the revenue

b) record the revenues as a liability at the end of the year

c) Accrue revenue by making an adjusting entry at the end of the period

d) All provided answers are true

V) when adjusting for depreciation, which of the following is one effect of the adjustment

a) Accumulated depreciation is decreased

b) The asset's book value declines

c) The cost of the equipment declines

d) The market value of the equipment declines

LO4 Under the cash basis of accounting, revenue is recorded when it is received in cash, and expenses are recorded when they are paid in cash. Under the accrual basis of accounting, revenue is recorded when earned, even if cash is received at an earlier or a later date, and expenses are recorded when incurred, even if cash is to be paid at an earlier or a later date. Considering the following events, match which month the revenue or expenses would be recorded using the accounting method specified.

Collins Company uses the accrual basis of accounting. Crane prepays cash in November for insurance that covers the following month, December, only.

Emily's Natural Company uses the accrual basis of accounting. Emily’s Natural makes a sale to a customer in June but does not expect payment until September.

Patricia's Printing uses the cash basis of accounting. Patricia’s receives cash from customers in March for services to be performed in June.

Wesley's Travel uses the cash basis of accounting. Wesley prepays cash in January for insurance that covers the following month, February, only.

a)January

b)March

c)June

)December

Analyzing and Interpreting Income Disclosures

Sales information for Tesla Inc. follows.

Automotive sales revenue includes revenues related to sale of new Model S, Model X and Model 3 vehicles, including access to our Supercharger network, internet connectivity, Autopilot, full self-driving and over-the-air software updates.

Automotive leasing revenue includes the amortization of revenue for Model S and Model X vehicles under direct lease agreements as well as those sold with resale value guarantees accounted for as operating leases under lease accounting. We do not yet offer leasing for Model 3 vehicles.

Services and other revenue consists of non-warranty after-sales vehicle services, sales of used vehicles, sales of electric vehicle components and systems to other manufacturers, retail merchandise, and sales by our acquired subsidiaries to third party customers.

Energy generation and storage revenues consists of the sale of solar energy systems and energy storage systems to residential, small commercial, and large commercial and utility grade customers.

Compute the relative size of sales revenue from the four types of revenue Tesla discloses. (Hint: Scale each type of revenue by total revenue.)
Round answers to the nearest whole percentage.

Compute the growth in sales revenue for both years from each of the four types of revenue.

• Round answers to the nearest whole percentage.
• Use a negative sign with answers, when appropriate.