Classify each of the following accounts as an asset, liability, stockholders’ equity, revenue, or expense item.
The Bonita Vista Golf & Country Club details the following accounts in its financial statements.

1. Develop a revenue management (maximizing) model based on the information given in the scenario.
2. How many seats should be allocated to each of the 16 itineraries to maximize revenue?
3. What is the (maximum) expected revenue to be earned per day for all 16 flights?
4. Assume operating costs for each of the legs is as follows:
   1. Leg 1 = $20,250
   2. Leg 2 = $19,750
   3. Leg 3 = $20,500
   4. Leg 4 = $19,500

What is the expected operating income for each of the legs? And in total for Freedom Airlines, given these 16 itineraries?

How do I find the optimal seat allocation?

Classify each of the following tasks as belonging in the revenue, expenditure, human resources/payroll, production, or financing cycle

a. Selling bonds to raise capital-

b. Purchasing electronic components to manufacture DVD players-

c. Moving electronic components from the stockroom to the production floor to begin making DVD players–

d. Send employees for an annual training-  

e. Receiving cash payments from customers-  

f. Decide how many goods to manufacture –

g. Acquiring new equipment for our manufacturing facility-

h. Picking DVD players from the warehouse to prepare them for shipping to fill orders –

i. Estimate the allowance for bad debt –

j. Receiving timecards from employees –

k. Sell 20% interest in the company to a venture capital firm –

l. Verifying a customer’s credit limit –

m. Pay federal payroll taxes –

n. Receive purchased goods in the receiving department –

Sales revenue for Wholesales ehf is ISK 480,000. Its variable cost is 40% of sales and fixed costs are ISK 80,000.

1. What does the Wholesalers ehf need to sell for great value in order for the business to be in balance (ie where income and expenses are equal)?

2. What is the company's degree of operating leverage, etc. current sales?

3. If Wholesale Sales ehf's sales increase by 10%, how will the results change? Calculate both the percentage change and the change in value.

Explain why Ford would be violating U.S. GAAP if it recognized all related revenue at the time cash was received from customers, rather than recording any as deferred

REVENUE RECOGNITION
If you sign up for and receive a new phone that would normally retail for $500 (cost to manufacture $380). We commit to a three year contract where we will have to pay back an amount that starts at $600 (to pay for the phone) but drops each month until it reaches zero at the end of 3 years (kind of like financing for the phone). We pay an activation fee of $35 along with the first month of service that will be $70 each month for the next 36 months. After one year of service, we will be eligible for $100 off the latest phone if we trade in the one year old phone for a new one. That rises to $200 after two years.

Show all journal entries needed to show revenue recognition.

Orlando advertised for bids for the purchase of $3 million principal amount of Waste Water Revenue Bonds. Bonds will be delivered on April 1, 2021, and the interest will be paid on April 1st of the following years. The bonds mature as follows:
Maturity Date
Amount ($)
4/1/2025
100,000
4/1/2026
100,000
4/1/2027
100,000
4/1/2028
100,000
4/1/2029
200,000
4/1/2030
200,000
4/1/2031
250,000
4/1/2032
250,000
4/1/2033
250,000
4/1/2034
700,000
4/1/2035
750,000
The City received three competing bids for the Waste Water Revenue Bonds. The three offers are as follows:
From Rogue Securities:
• The City receives $3.5 million dollars
• The Interest Rates for the serial bonds with maturities:
o 2025 through 2030, 5.50 percent
o 2031 through 2035, 6.00 percent
From Johnson-Miller:
• The City Receives $3 million dollars
• The Interest Rates for the serial bonds with maturities:
o 2025 through 2027, 4.35 percent
o 2028 through 2032, 5.25 percent
o 2033 through 2035, 6.50 percent
From Shostak Corp:
• The City receives $2.9 million dollars
• The Interest rates for the serial bonds with maturities:
o 2025 to 2032, 5.75 percent
o 2033 to 2035, 6.25 percent
For each bid, compute the net interest cost (NIC) and the true interest cost (TIC). Which bid is more advantageous for the city?

a. Your company is evaluating a potential acquisition with annual revenue of $500 million, operating profit of $50 million and after-tax cash flow of $30 million. Your corporate development team believes it has found synergies that can save $50 million in costs which can be realized by year 3. Assuming a 10% weighted average cost of capital what is the maximum price your company should pay for this acquisition?

b. Suppose the potential deal in a question is for a highly cyclical company at peak earnings. If there is a 40% probability of recession by Year 3 and the impact would be negative by 25% of current profit estimates how does this change your answer for a?

Shelly's Boutiques and Crafts had revenue of $5,700,000 this year on sales of 575,000 units. Variable costs were 35% and fixed costs totaled $3,150,000. Although the first five years were relatively profitable, increases in competition have led to a negative trend in profitability that has led them to the point where they have to make some changes to stay afloat. The company is evaluating two options to stay afloat.

Option 1: Purchase machinery to automate their operations. this machinery cost $625,000 but will decrease variable costs by 9%

Option 2: Outsource the production of one of their main components that requires a substantial amount of machinery and skilled labor. This will reduce fixed costs by $425,000, but increases variable costs from their current 35% of sales to 40% of sales.

a. determine break even points in units before changes. what is fixed cost total? what is the contribution margin per unit? what is the break even point in units?

b.) Assuming an income tax rate of 35%, what dollar value of sales is required to earn an after tax profit of $800,000 What before tax profit would be needed to earn an after tax profit of $800,000? what is the contribution margin raton? What dollar amount of sales would be required to earn the after tax profit described above?

c.) Calculate the operating leverage before applying any of the options: What is the contribution margin in Total? What is the operating income in total? what is the operating leverage factor?

d.) Calculate the break even point in units after applying Option 1: What is the new fixed cost in total? What is the new contribution margin per unit? What is the new break even point in units?

e.) Calculate the operating leverage after applying Option 1: What is the new contribution margin in Total? What is the new operating income in total? what is the new operating leverage factor?

f.) Calculate the break even point in units after applying Option 2: What is the new fixed cost in total? What is the new contribution margin per unit? What is the new break even point in units?

g.) Calculate the operating leverage after applying Option 2: What is the new contribution margin in Total? What is the new operating income in total? what is the new operating leverage factor?