Case:

Rent Relief Caravans4Hire Ltd1 provides short-term rental of caravans to tourists for camping holidays throughout Australia. Caravans4Hire Ltd leases several large properties in Adelaide, Perth and Sydney, which it needs to park its caravans when not in use. Due to border restrictions, travel restrictions, localised lockdowns and Government advice to stay home, Caravans4Hire Ltd has suffered a significant loss of revenue and cash flow. On 1 May 2020 the National Hotel and Tourism Industry Association which is a non-government, not-for-profit industry association. It supports its members, who are businesses operating in the hospitality and tourism industry awarded Caravans4Hire Ltd a grant of $360 000 in total for rent relief for the three months ended 31 July 2020. The grant was received in cash on 1 May 2020. Caravans4Hire Ltd is under no obligation to repay the money received. REQUIRED All questions should be answered from the perspective of Caravans4Hire Ltd. The word lengths are a suggestion only, i.e., they are NOT strict word limits for each part.

a) What is the main accounting policy issue(s) that need to be resolved to account for the grant from the National Hotel and Tourism Industry Association? (20%) (part a) 15 – 50 words)

b) i) Identify one principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle (e.g., Conceptual Framework, Chapter X, para. x.xx) AND explain why you chose that principle. (20%)

ii) identify another principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle.(10%) (part b) 50 – 100 words).

c) Describe an accounting policy to account for the grant from the National Hotel and Tourism Industry Association. Do not justify your policy. Just describe it. (50%) (part c) 20 - 80 words)

10. A researcher claims that the mean rate of individuals below poverty in the City of Chicago is below 17 %. Based on the data represented for the years 2005 – 2011, perform a hypothesis test to test his claim using a significance level of α = 0.10.

11. Would your conclusion change for question 10 if you used a significance level of α = 0.05? Explain.

12. A survey conducted at Chicago Public Schools (CPS) involving high school students on whether they had participated in binged drinking during the past month. Binge drinking was defined as 5 or more drinks in a row on one or more of the past 30 days.

a. From the sample data is there evidence that the proportion of students who participate in binge drinking is greater than 10%? Write a null and alternative hypothesis and perform an appropriate significance test using α=0.05.

b. Construct a 90% Confidence Interval for the population proportion. Does it support the same conclusion as in 12a? Explain.

QUESTION TWO

1. Discuss the capital allowances available to hotel owners and the capital expenditures that qualify for such allowances.                                                                                                            
2. Wageni tourist hotel ltd. Is a five star hotel in Mombasa. The hotel provided the following information,

1. Written down values as at 31.12.2018

Disposals during the year.

2. Additions during the year

1. Computer            350,000.00
2. Fax Machine        40,000.00
3. Photocopier         160,000.00
4. Beds                    500,000.00
5. New hotel building                      5,000,000.00

      The new hotel building was brought to use on 1.9.2019

3. The old hotel building was first brought in to use on 1.1.2014 at a cost of Sh. 8,000,000.00
4. A saloon car which cost sh. 1,200,000 in 2014 was traded in for a new car costing Sh. 900,000.00. The old car was valued at Shs. 600,000 and the company paid a balance of shs. 300,000.00

Required

1. Compute capital allowances due to the company for the year ended 31.12.2019.            
2. Show the written down value of all the assets as at 31.12.2019. Comment on Class I balance.

Hanson Inn is a 96-room hotel located near the airport and convention center in Louisville, Kentucky. When a convention or a special event is in town, Hanson increases its normal room rates and takes reservations based on a revenue management system. The Classic Corvette Owners Association scheduled its annual convention in Louisville for the first weekend in June. Hanson Inn agreed to make at least 50% of its rooms available for convention attendees at a special convention rate in order to be listed as a recommended hotel for the convention. Although the majority of attendees at the annual meeting typically request a Friday and Saturday two-night package, some attendees may select a Friday night only or a Saturday night only reservation. Customers not attending the convention may also request a Friday and Saturday two-night package, or make a Friday night only or Saturday night only reservation. Thus, six types of reservations are possible: convention customers/two-night package; convention customers/Friday night only; convention customers/Saturday night only; regular customers/two-night package; regular customers/Friday night only; and regular customers/Saturday night only.

The cost for each type of reservation is shown here:

The anticipated demand for each type of reservation is as follows:

Hanson Inn would like to determine how many rooms to make available for each type of reservation in order to maximize total revenue.

1. Define the decision variables and state the objective function. Round your answers to the nearest whole number.
   

   Let	CT = number of convention two-night rooms
   	CF = number of convention Friday only rooms
   	CS = number of convention Saturday only rooms
   	RT = number of regular two-night rooms
   	RF = number of regular Friday only rooms
   	RS = number of regular Saturday only room

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

2. Formulate a linear programming model for this revenue management application. Round your answers to the nearest whole number. If the constant is "1" it must be entered in the box.
   

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

   S.T.

   1)	CT
   2)	CF
   3)	CS
   4)	RT
   5)	RF
   6)	RS
   7)	CT	+	CF
   8)	CT	+	CS
   9)	CT	+	CF	+	RT	+	RF
   10)	CT	+	CS	+	RT	+	RS
   11)	CT,	CF,	CS,	RT,	RF,	RS			0

3. What are the optimal allocation and the anticipated total revenue? Round your answers to the nearest whole number.
   

   Variable	Value
   CT
   CF
   CS
   RT
   RF
   RS

   
   Total Revenue = $  
   
4. Suppose that one week before the convention the number of regular customers/Saturday night only rooms that were made available sell out. If another nonconvention customer calls and requests a Saturday night only room, what is the value of accepting this additional reservation? Round your answer to the nearest dollar.
   
   The dual value for constraint 10 shows an added profit of $   if this additional reservation is accepted.

Hanson Inn is a 96-room hotel located near the airport and convention center in Louisville, Kentucky. When a convention or a special event is in town, Hanson increases its normal room rates and takes reservations based on a revenue management system. The Classic Corvette Owners Association scheduled its annual convention in Louisville for the first weekend in June. Hanson Inn agreed to make at least 50% of its rooms available for convention attendees at a special convention rate in order to be listed as a recommended hotel for the convention. Although the majority of attendees at the annual meeting typically request a Friday and Saturday two-night package, some attendees may select a Friday night only or a Saturday night only reservation. Customers not attending the convention may also request a Friday and Saturday two-night package, or make a Friday night only or Saturday night only reservation. Thus, six types of reservations are possible: convention customers/two-night package; convention customers/Friday night only; convention customers/Saturday night only; regular customers/two-night package; regular customers/Friday night only; and regular customers/Saturday night only.

The cost for each type of reservation is shown here:

The anticipated demand for each type of reservation is as follows:

Hanson Inn would like to determine how many rooms to make available for each type of reservation in order to maximize total revenue.

1. Define the decision variables and state the objective function. Round your answers to the nearest whole number.
   

   Let	CT = number of convention two-night rooms
   	CF = number of convention Friday only rooms
   	CS = number of convention Saturday only rooms
   	RT = number of regular two-night rooms
   	RF = number of regular Friday only rooms
   	RS = number of regular Saturday only room

   Max

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

2. Formulate a linear programming model for this revenue management application. Round your answers to the nearest whole number. If the constant is "1" it must be entered in the box.
   

   Max

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

   S.T.

   1)	CT	<
   2)	CF	<
   3)	CS	<
   4)	RT	<
   5)	RF	<
   6)	RS	<
   7)	CT	+	CF	≥
   8)	CT	+	CS	≥
   9)	CT	+	CF	+	RT	+	RF	≤
   10)	CT	+	CS	+	RT	+	RS	≤
   11)	CT,	CF,	CS,	RT,	RF,	RS		≥	0

3. What are the optimal allocation and the anticipated total revenue? Round your answers to the nearest whole number.
   

   Variable	Value
   CT
   CF
   CS
   RT
   RF
   RS

   
   Total Revenue = $  
   
4. Suppose that one week before the convention the number of regular customers/Saturday night only rooms that were made available sell out. If another nonconvention customer calls and requests a Saturday night only room, what is the value of accepting this additional reservation? Round your answer to the nearest dollar.
   
   The dual value for constraint 10 shows an added profit of $   if this additional reservation is accepted.

The COVID-19 pandemic has caused many retailers to shut down their business, layoff their employees, and drain their bank accounts.

While some federal funding will help these businesses stay afloat, many will have to adjust to new ways of operation once the quarantines are lifted.

Several ways can be used to reframe a retailer’s business model. Form reconfiguration; Time reconfiguring; Place reconfiguring; Possession reconfiguring. Using at least three of these methods of reframing, describe how a retailer of your choice will adjust its business model to be successful in reopening.

Choose a specific retailer from one of these categories:
Theme Park; Salon; Hotel; Beauty Supply Store; Sports Bar

The purpose of this homework is to test your knowledge of GUI. Consider a fictional park where the entry price for 1 adult ticket is $50, and for 1 children ticket is $25. Write a simple GUI application that let user to enter the number of tickets and display the total price. The GUI should contain:

● One text field for the user to enter the number of adult tickets

● One text field for the user to enter the number of children tickets

● One button “Calculate total cost”

● One text field to display the total cost When the user clicks the button then the correct cost is displayed in the total price field. If the input text field is empty then it should be treated as 0 tickets.

Emma has noticed a small red fox living in the park near her apartment. She takes a walk at the same time every day and has observed the fox in three different areas: in the woods, in the meadow, and by the pond.

If it is in the woods on one observation, then it is twice as likely to be in the woods as in the meadow on the next observation but not by the pond.

If it is in the meadow on one observation, then it is equally likely to be in any of the three locations on the next observation.

If it is by the pond on one observation, there is a 0.5 probability it will be by the pond on the next observation and will otherwise be in the woods.

When Emma went for a walk today, the red fox was in the woods.

a. Define the states and construct the transition matrix for this Markov chain.

b. Find the initial distribution vector for this Markov Chain.

c. Determine the probability that the red fox is in each of the three areas tomorrow.

If this trend continues, what is the probability the red fox will be in the meadow in the long run?

Show all work to support your answer. Correct answers without supporting work will not receive credit.