Value of the Night Audit"

Evaluate the various night audit reports and determine which is the most valuable across the greatest number of circumstances. Explain your rationale. Analyze recent innovations in night audit procedures (with a focus on automation) to determine the most significant benefit to both guests and management of any given hotel. Explain your rationale.

What are 7 or more key ways in which marketers (in hotels and other companies) could actively and effectively engage with TripAdvisor? One way to answer this question is to assume that you are the CEO of a hotel and your TripAdvisor ratings at below 2 (where 5 is the best). What specific strategic initiatives would you as the CEO pursue to address this situation?

You have been asked to present in front of investors who are interested in putting large amounts of money into this company. Your goal is to use the data of these financial statements to convince them to do so.   Please provide an analysis on the company’s assets, liabilities, cash, and profit. show any calculations, having a difficult time with this.

Background

• The relationship between cost of goods sold and sales revenue Is expected to continue in the near term and no inflation is expected.
• Operating expenses include $200,000 in depreciation (fixed expense), the remainder is variable costs tied to sales revenue.
• Fixed assets are adequate to support sales growth for the next two years and long=term debt will decline $200,000 per year.
• Dividend policy calls for 40% of net profits after taxes to be paid before yearend.
• Interest is 10% of long-term debt and notes payable
• Inventory needs to grow at half the rate of sales growth and accounts receivable maintains the same relationship to sales as was the case on December 31, 2019 for 2019 sales. Accounts payable maintains the same relationship to cost of good sold as of December 31, 2019 for 2019 sales.
• Any cash over $500,000 is put in marketable securities, Interest income is negligible
• Other current liabilities are stable.
• Taxes payable are equal to one-half of the current year’s taxes
• Assume sales will increase 10% per year for each of the next two years.

  Techno Corp

  Income Statement

  Actual results 2019 for 12 months ending December 31, 2019

  Sales revenue (10,000 units at $250 each)	$2,500,000
  Cost of goods sold ($100 per unit)	($1,000,000)
  Gross profit	$1,500,000
  Operating expenses	($500,000)
  Operating profit	$1,000,000
  Interest expense	($200,000)
  Net profits before taxes	$800,000
  Taxes (30%)	($240,000)
  Net profits after tax	$560,000
  Dividends on common stock	$224,000

  Techno Corp

  Balance Sheet

  December 31, 2019

  ASSETS
  Cash	$500,000
  Marketable securities	$300,000
  Accounts receivable	$500.000
  Inventory	$400,000
  Total current assets	$1,700,000
  Net fixed assets	$2,000,000
  Total assets	$3,700,000
  LIABILITIES AND STOCKHOLDER’S EQUITY
  Accounts payable	$150,000
  Taxes payable	$120,000
  Notes payable (long-term debt due within one year)	$200,000
  Other current liabilities	$200,000
  Total current liabilities	$670,000
  Long-term debt	$1,800,000
  Total liabilities	$2,470,000
  Common stock	$500,000
  Retained earnings	$730,000
  Total liabilities and stockholder’s equity	$3,700,000

Assignment

You are a consultant, external to this firm. Create two years (2020 and 2021) of pro forma income statements and balance sheets and the statement of cash flows, including operating, investing and financing sections for 2020 only.

Techno Corporation

Techno Corp

Income Statement

Actual results 2019 for 12 months ending December 31, 2019

Techno Corp

Balance Sheet

December 31, 2019

Techno Corporation Paper

Techno Corporation is developing its pro forma financial statement forecasts for 2020 and 2021. Its actual results for 2019 are shown in the income statement and balance sheet.

Background

• The relationship between cost of goods sold and sales revenue Is expected to continue in the near term and no inflation is expected.
• Operating expenses include $200,000 in depreciation (fixed expense), the remainder is variable costs tied to sales revenue.
• Fixed assets are adequate to support sales growth for the next two years and long=term debt will decline $200,000 per year.
• Dividend policy calls for 40% of net profits after taxes to be paid before yearend.
• Interest is 10% of long-term debt and notes payable
• Inventory needs to grow at half the rate of sales growth and accounts receivable maintains the same relationship to sales as was the case on December 31, 2019 for 2019 sales. Accounts payable maintains the same relationship to cost of good sold as of December 31, 2019 for 2019 sales.
• Any cash over $500,000 is put in marketable securities, Interest income is negligible
• Other current liabilities are stable.
• Taxes payable are equal to one-half of the current year’s taxes.
• Assume sales will increase 10% per year for each of the next two years.

The average daily rate of a hotel in Canada as of August 2018 was $182.65. Assume the average daily rate follows a normal distribution with a standard deviation of $25.70.

Standard Normal Distribution Table

a. What is the probability that the average daily rate of a Canadian hotel will be:

(i) less than $175
P(X < 175)=P(X < 175)=

(ii) more than $200
P(X > 200)=P(X > 200)=

(iii) Between $150 and $190
P(150 < X < 190)=P(150 < X < 190)=

b. Determine the average daily rates that separate the:

(i) top 4% of average daily rates from the rest of the daily rates or from the bottom 96% of average daily rates
x=x=

(ii) bottom 15% of average daily rates from the rest of the daily rates
x=x=

(iii) middle 65% of average daily rates from the rest of the daily rates

  < x <  < x <  

Please provide 6 decimal places.

Please provide correct answers. Thanks.

Royal Park Ltd is an existing company that has issued previously 300,000 ordinary shares of $8 each and 100,000 5% preference shares of $15 each.

On 1^st January 2019, Royal Park Ltd offered to issue an additional 250,000 ordinary shares for $11, payable in two installments:

• $7 initially on application;
• $4 payable based on calls as required.

Applications for 400,000 shares were received by the closing date of 30^th January 2019.

On 10^th February 2019, shares were allotted, and a refund was made to unsuccessful applicants.

Directors announced on 30^th June 2019 a profit after tax of $900,000.

On 7^th July 2019, the board of directors during the Annual General Meeting announced that the company will pay preference dividends and ordinary dividends of 6.2 cents per fully paid equivalent share from retained earnings.

On 3^rd August 2019, payment was made for dividends declared.

Required:

a) Prepare the general journal entries to record the information above.                   

Narrations are NOT required.

During the Spock Hotel's last audit, the auditor noticed that the financial statements were missing some footnotes important for users using them for decision making. This action by the Spock Hotel is a violation of:

A trial balance is a necessary checkpoint for uncovering certain types of errors before one proceeds to other steps in the accounting process.

True

False

When posting transactions from the general journal to the ledger, ________ will need to be recorded on the journal page.

Le Hotel Cougar purchases $3,000 worth of supplies on July 15th, but they do not have to pay until next month. How should we record this transaction in July?

The food and beverage manager of the Glitz Hotel just got a great deal on beverages for the bar. Instead of buying large 5L containers for $25 each, they instead were able to purchase 1,000 cases of 12-packs of 500ml cans for $26,640. Beverages are served in 500ml servings. Usually, they sell 800 beverages over a weekend, but they actually sold 900 this past weekend. However, 20 customers had to be refunded due to problems with the cans.

Direct labour costs are driven by the number of beverages served. A typical weekend requires four servers each working two 8-hour shifts at $12/hour. At the end of the weekend, actual labour costs were $816.50 for 71 hours.

Required:

A   Calculate the following variances:

Material rate

Material quantity

Direct Labour rate

Direct labour efficiency

B   Briefly explain the variances to the hotel manager, and explain if the variances are somehow interlinked. Assess the special purchase and identify other factors that should be considered.

a)In order to determine the average price of hotel rooms in georgia, a sample of 63 hotels were selected. It was determined that the test statistic (z) was $1.74. We would like to test whether or not the average room price is significantly different from $110. Population standard deviation is known to us.Compute the p-value.

b)In order to determine the average price of hotel rooms in Atlanta, a sample of 36 hotels were selected. It was determined that the average price of the rooms in the sample was $108.4. The population standard deviation is known to be $13. We would like to test whether or not the average room price is significantly different from $110.Compute the test statistic.

c)A sample of 36 account balances of a credit company showed an average balance of $1,179 and a standard deviation of $136. You want to determine if the mean of all account balances is significantly greater than $1,150. Use a 0.05 level of significance. Assume the population of account balances is normally distributed.Compute the test statistic.

Conjoint Analysis

Imagine we are evaluating three hotels and have identified a conjoint model with three attributes. Two of the attributes (food and beach) have three levels, and the third, amusement, has two levels (see Table 1). We create a self-administered questionnaire. Four respondents are each asked to rate 18 packages (hotels) of attributes on a scale from 0 to 10. For example, a package/hotel might be : “A hotel with food featuring snacks, a beach with sand and boats, and no amusements.” The respondents responses are recorded in the Excel file “2_conjoint_hotels.xlsx” Google sheets version here (can be easily imported to excel): https://docs.google.com/spreadsheets/d/17tZ2xqS7KswhO9CgnUAgv-mKqPj63GwxaiHP2dhj7YU/edit?usp=sharing

Write out your regression model. For each respondent, run the conjoint analysis and report the part-worths.

.