Question 5 Accounting for Consolidation                                                                

The accountant of Park Ltd needs to prepare consolidated financial statements for Park Ltd at the end of financial year. Following information was available on 30 June 2020:

Park Ltd acquired 100 per cent interest in Sun Ltd for $850,000 on 1 July 2015. All assets and liabilities were fairly valued on the acquisition date. At the date of acquisition, the equity of Sun Ltd included:

Share capital                                 $320,000

Reserve                                        $160,000

Retained earnings                         $280,000

The balance of the investment account was $850,000 as shown in the Statement of Financial Position of Park Ltd on 30 June 2020.

1. The directors of Park Ltd believed that goodwill acquired was impaired by 20 per cent for the year ended 30 June 2020.
2. On 17 February 2020, Sun Ltd paid $60,000 in management fees to Park Ltd.
3. On 3 March 2020, Park Ltd sold inventory to Sun Ltd at a value of $48,000.
4. The above inventory had a cost of $29,000 for Park Ltd to produce. All inventories remained unsold in Sun Ltd on 30 June 2020. Park Ltd and Sun Ltdadopt the perpetual inventory system for inventory accounting. The income tax rate is 30%.

Required: (Narrations are required in this question)     

1. Describe the measurement of goodwill acquired in this question according to AASB 3.
2. Prepare relevant consolidation journal entries on 30 June 2020.

The accountant of Park Ltd needs to prepare consolidated financial statements for Park Ltd at the end of financial year. Following information was available on 30 June 2020:

Park Ltd acquired 100 per cent interest in Sun Ltd for $850,000 on 1 July 2015. All assets and liabilities were fairly valued on the acquisition date. At the date of acquisition, the equity of Sun Ltd included:

Share capital                                 $320,000

Reserve                                        $160,000

Retained earnings                         $280,000

The balance of the investment account was $850,000 as shown in the Statement of Financial Position of Park Ltd on 30 June 2020.

1. The directors of Park Ltd believed that goodwill acquired was impaired by 20 per cent for the year ended 30 June 2020.
2. On 17 February 2020, Sun Ltd paid $60,000 in management fees to Park Ltd.
3. On 3 March 2020, Park Ltd sold inventory to Sun Ltd at a value of $48,000.
4. The above inventory had a cost of $29,000 for Park Ltd to produce. All inventories remained unsold in Sun Ltd on 30 June 2020. Park Ltd and Sun Ltd adopt the perpetual inventory system for inventory accounting. The income tax rate is 30%.

Required: (Narrations are required in this question)     

1. Describe the measurement of goodwill acquired in this question according to AASB 3.
2. Prepare relevant consolidation journal entries on 30 June 2020.

The comparative balance sheets of Maynard Movie Theater Company at June ​30, 2018 and 2017​, reported the​ following:

1.
Prepare Maynard Movie Theater ​Company's statement of cash flows for the year ended June ​30, 2018​, using the indirect method to report cash flows from operating activities. Report noncash investing and financing activities in an accompanying schedule.
2.
Evaluate Maynard​'s cash flows for the year. Mention all three categories of cash​ flows, and give the rationale for your evaluation.

Requirement 1. Prepare Maynard Movie Theater ​Company's statement of cash flows for the year ended June ​30, 2018​, using the indirect method to report cash flows from operating activities. Report noncash investing and financing activities in an accompanying schedule.
Start by completing the cash flows from operating activities. Then complete the remaining statement of cash flows and the accompanying schedule of noncash investing and financing activities. ​(Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in​ cash.)

Requirement 2. Evaluate Maynard​'s cash flows for the year. Mention all three categories of cash​ flows, and give the rationale for your evaluation.
Maynard Movie Theater ​Company's cash flows look
▼
strong
weak
.
▼
Financing activities
Investing activities
Operating activities
are the main source of cash.
Maynard Movie Theater generated a
▼
negative
positive
cash flow from investing activities largely due to the
▼
purchase
sale
of equipment and a building. It generally bodes
▼
poorly
well
for the future when a company invests in new capital assets.
Maynard Movie Theater generated a
▼
negative
positive
cash flow from financing activities. These financing activities indicate that the Maynard Movie Theater
▼
is considered
is not considered
​credit-worthy to be able to issue​ long-term notes. We also see that the company has
▼
insufficient
sufficient
funds to pay cash dividends.

Amy Richardson had been a well-paid sales manager of a major hotel chain for 15 years. Due to a hotel owner's illness, Amy was offered the opportunity to purchase a hotel near a seaside vacation area she had often visited. After obtaining a lawyer and a financial accountant to assist her, Amy did an analysis of the most recent financial statements of the hotel. Since the hotel had consistently shown a profit during the past few years, Amy thought that the price of the hotel was reasonable, so she decided to purchase the hotel. She resigned her position, obtained a loan, and purchased the hotel.

During the first year as a hotel manager, Amy received an offer from a tour operator who proposed to guarantee a considerable number of room reservations, including during the off-season. However, she turned down the offer because the tour operator asked for a 20% price reduction compared to the regular room rate. A few weeks later, she decided to shut down the restaurant, located in the main building of the hotel, in order to save expenses. With regard to general expenses, she was particularly concerned with the high room cleaning and service costs. On the sales side, although the reservations for the cheaper standard rooms were a bit sluggish, the more expensive large-size superior rooms had a very good occupancy rate of over 90%.

The following year, there was a severe economic downturn and also a very bad weather season that reduced the number of guests and also caused a resulting mold situation in the hotel building that required expensive repair work. Amy ran short of cash, became emotionally distraught, and eventually had to sell the hotel at a significant loss.

Question: Using Relevant Costs To Make Short-Term Decisions explain potential management errors that Amy had made and could have helped her to improve decision-making and the financial results of the business.

"Trydint" bubble-gum company claims that 3 out of 10 people prefer their gum to "Eklypse". Test their claim at the 99 confidence level. The null and alternative hypothesis in symbols would be: H 0 : p ≤ 0.3 H 1 : p > 0.3 H 0 : μ = 0.3 H 1 : μ ≠ 0.3 H 0 : μ ≥ 0.3 H 1 : μ < 0.3 H 0 : μ ≤ 0.3 H 1 : μ > 0.3 H 0 : p = 0.3 H 1 : p ≠ 0.3 H 0 : p ≥ 0.3 H 1 : p < 0.3 The null hypothesis in words would be: The average of people that prefer Trydint gum is not 0.3. The proportion of all people that prefer Trydint gum is less than 0.3. The proportion of people in a sample that prefers Trydint gum is 0.3. The proportion of people in a sample that prefer Trydint gum is not 0.3 The proportion of all people that prefer Trydint gum is greater than 0.3. The proportion of all people that prefer Trydint gum is 0.3 The average of people that prefer Trydint gum is 0.3. Based on a sample of 280 people, 58 said they prefer "Trydint" gum to "Eklypse". The point estimate is: (to 3 decimals) The 99 % confidence interval is: to (to 3 decimals) Based on this we: Reject the null hypothesis Fail to reject the null hypothesis

Using Loops for the Hotel Occupancy calculator.

You will write a program that calculates the occupancy of a hotel. Rules: 1# The hotel must have more than 2 floors and less than or equal 5 floors. 2# Each floor in the hotel can have a different number of rooms on the floor. 3# You must set the number of occupied rooms. Again, there must less rooms occupied than the number of rooms. 4# Using the total number of rooms and the total number of occupied rooms calculate the occupancy rate of the hotel. 5# Every input into this program must be checked to see if the numbers are valid.

JAVA

Park Equipment Leasing purchased a new milling machine for $1.8 million. They depreciate it using MACRS (5-year property). They lease it to Valles Global Industries for $600,000 a year for eight years. Under the Park-O-Matic leasing option, Valles Global owns the machine after the eight years. Park Equipment leasing uses an After-Tax MARR of 12% and pays 38% income tax. Is this a profitable deal for Park Equipment leasing?

Some Internet booking sites operate by letting guests bid for hotel rooms at whatever price the guest is willing to pay. In such cases, guests may not know the hotel they will be reserving at the time of their bid. If the guest’s bid is successful (i.e., if a hotel is willing to sell a room for the suggested bid price), a nonrefundable reservation is made. If you were managing a front office, would you want your hotel to participate in such an arrangement? Explain your reasoning.

The accompanying data resulted from a study of the relationship between y = brightness of finished paper and the independent variables

x₁ = hydrogen peroxide (% by weight), x₂ = sodium hydroxide (% by weight), x₃ = silicate (% by weight), and x₄ = process temperature.

(a) Find the estimated regression equation for the model that includes all independent variables, all quadratic terms, and all interaction terms. (Round your answers to four decimal places.)

= ____ + _____ x₁ + ____ x₂ + ____ x₃ + ____ x₄ + _____ x₁² + _____ x₂² + ______ x₃² + _____ x₄² + ______ x₁x₂ + _____ x₁x₃ + _____ x₁x₄ + _____ x₂x₃ + ______ x₂x₄ + ______ x₃x₄

(b) Calculate SSResid. (Round your answer to four decimal places.)

SSResid =