40. What is a typical Day of Arrival (DOA) and pattern for Special Corp customers?
41. What is the typical BMF that management companies get?
a. 3%
b. 5%
c. 2%
d. within 30 days they start getting 3%
42. On the STR report, if the development funnel/ pipeline is strong showing a lot of rooms are being developed what might it indicate?
a. Your brand is has strong preference
b. Owners Priority is being made occasional across the portfolio
c. Owners Priority is being made more quickly than other hotel’s mgt. companies’ brands
d. a and c
42. When driving sales, revenue management in a group hotel should shrink the hotel by adding great groups, as far out as reasonably possible, know based on history what the cross over goal should be, as long as the groups have what?
a. The right number of customers
b. The right average rate
c. The largest total spend possible
d. The use the banquet and outlet space occasionally
43. If a hotel has a lot of great group room nights on the books in years out, it also allows revenue management to do what important strategy?
a. Open discounts
b. Close out discounts
c. Close out all corporate, association, and other group.
d. focus on driving transient higher rates
In: Operations Management
Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, Iowa, while Gary manages the plant in El Segundo, California. Production managers are paid a salary and get an additional bonus equal to 5% of their base salary if the entire division meets or exceeds its target profits for the year. The bonus is determined in March after the company's annual report has been prepared and issued to stockholders. Shortly after the beginning of the New Year, Mary received a phone call from Gary that went like this: Gary: How's it going, Mary? Mary: Fine, Gary. How's it going with you? Gary: Great! I just got the preliminary profit figures for the division for last year and we are within $200,000 of making the year's target profits. All we have to do is pull a few strings, and we'll be over the top! Mary: What do you mean? Gary: Well, one thing that would be easy to change is your estimate of the percentage completion of your ending work in process inventories. Mary: I don't know if I can do that, Gary. Those percentage completion figures are supplied by Tom Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates. Besides, I have already sent the percentage completion figures to corporate headquarters. Gary: You can always tell them there was a mistake. Think about it, Mary. All of us managers are doing as much as we can to pull this bonus out of the hat. You may not want the bonus check, but the rest of us sure could use it. The final processing department in Mary's production facility began the year with no work in process inventories. During the year, 210,000 units were transferred in from the prior processing department and 200,000 units were completed and sold. Costs transferred in from the prior department totaled $39,375,000. No materials are added in the final processing department. A total of $20,807,500 of conversion cost was incurred in the final processing department during the year. Required: 1. Tom Winthrop estimated that the units in ending inventory in the final processing department were 30% complete with respect to the conversion costs of the final processing department. If this estimate of the percentage completion is used, what would be the Cost of Goods Sold for the year? (Note: Since all units completed were sold, the cost of goods transferred out = Cost of Goods Sold.) 2. Gary is recommending that the completion percentage by adjusted by 10 percentage points in order to assist the team in making their bonus. a. Calculate the cost of goods sold if the ending inventory is 20% complete in regard to conversion costs. Would net income increase or decrease if this option was chosen over the 30% completion percentage? How much is the increase? b. Calculate the cost of goods sold if the ending inventory is 40% complete in regard to conversion costs. Would net income increase or decrease if this option was chosen over the 30% completion percentage? How much is the increase? c. Based on your calculations, which percentage is Gary suggesting that Mary use for her ending inventory calculations. 3. Do you think Mary James should go along with the request to alter estimates of the percentage completion? Why or why not? Deliverables: 1. Submit an Excel spreadsheet that documents the calculations made for steps 1 and 2 above. All items should be clearly labeled, and appropriate formulas should be used to perform your calculations. I am a complete novice with excel. I have the answers to the calculations, but don't know how to put them onto an excel spreadsheet.
In: Accounting
Al Marina Engineering is in the business of construction. Due to
recession the construction industry in going downward. Al Marina is
presently having some tenders applied in the past and the company
plans to complete these project to meet the recession period. The
major item of concern in the business was the cash cycle and this
is directly dependent on the collection from the Accounts
receivables. Mr Mahmood the Chief Accountant appoints you on 1st
May 2019 to manage his business Accounts receivable and to
regularly follow up with the accounts receivables for collection of
cash as and when due. You have collected the required details from
the accounts person relating to receivables. The Accounting record
shows projects completed in April was of RO 377250 and the closing
balance of Accounts receivable was RO 220,160.
During the month of May you have collected the details of the Accounts receivables. Your finding about the accounts receivable reveals that in one of Account receivable whose project was completed eight months back, have not paid the outstanding bill for RO 2000 The customer has already sold the property and is nowhere traceable. The Management have decided to treat the same as Bad debt and remove the name from receivables. During the current month business completed some project for RO 335,000 and the amount collected from receivables were RO 328,167.
During the Month of June one of your receivable on whom RO 10000 was due on 8th June could not pay the amount on the due date. However he accepted a 30 days note at 8% interest. This was not recorded in the accounts. In June the business completed contract for RO 347000 and the collection from Accounts receivable were RO 348,333. The Direct write off method for recording uncollectable was not suitable for this type of business and so, you have decided to change from direct writ off method to the allowance method for recording uncollectable for doubtful debts. You have decided to make an allowance @ 4% on closing Accounts receivable. In the month of July on the due date the note receivable was dishonoured. In the same month the customer whose name was removed as Bad Debt, paid the amount due.
You are required to record the required Journal entries for the above transactions.
**note: Working notes form part of the
answer
In: Accounting
Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and was completed on December 31, 2014. Dobbs made the following payments to Kiner, Inc. during 2014:
Date Payment
June 1, 2014 $6,000,000
August 31, 2014 9,000,000
December 31, 2014 7,500,000
In order to help finance the construction, Dobbs issued the following during 2014:
1. $5,000,000 of 10-year, 9% bonds payable, issued at par on May 31, 2014, with interest payable annually on May 31.
2. 1,000,000 shares of no-par common stock, issued at $10 per share on October 1, 2014.
In addition to the 9% bonds payable, the only debt outstanding during 2014 was a $1,250,000, 12% note payable dated January 1, 2010 and due January 1, 2020, with interest payable annually on January 1.
Instructions
Compute the amounts of each of the following:
1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost.
2. Avoidable interest incurred during 2014.
3. Total amount of interest cost to be capitalized during 2014.
In: Accounting
Caribbean Construction Corporation supplies materials and lease machinery for construction. Data regarding the store's operations follow: Sales are budgeted at $375,000 for November, S280,250 for December, and S298,654 for January Collections are expected to be 60% in the month of sale, 30% in the month following the sale, and 10% uncollectible. The cost of goods sold is 60% of sales. The company desires an ending merchandise inventory equal to 55% of the cost of goods sold in the following month Payment for merchandise is made in the month folowing the purchase. Other monthly expenses to be paid in cash are $18,956. Monthly depreciation is S17,500. - " " Ignore taxes. Balance Sheet October 31 Cash Accounts receivable (net of allowance for uncollectible accounts) S16,000 74,000 140.400 L066000 Property, plant and equipment (net of$500,000 accumulated depreciation) Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $240,000 640,000 416.400 Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December c. Prepare Cash Budgets for November and December d. Prepare Budgeted Income Statements for November and December e. Prepare a Budgeted Balance Sheet for the end of Decembe
In: Accounting
Precision Construction entered into the following transactions during a recent year.
| January | 2 | Purchased a bulldozer for $266,000 by paying $28,000 cash and signing a $238,000 note due in five years. | ||
| January | 3 | Replaced the steel tracks on the bulldozer at a cost of $28,000, purchased on account. The new steel tracks increase the bulldozer's operating efficiency. | ||
| January | 30 | Wrote a check for the amount owed on account for the work completed on January 3. | ||
| February | 1 | Repaired the leather seat on the bulldozer and wrote a check for the full $1,600 cost. | ||
| March | 1 | Paid $8,400 cash for the rights to use computer software for a two-year period. |
Required:
1-a. Complete the table below, for the above transactions. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)
1-b. Prepare the journal entries for each of the above transactions.
2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Precision Construction should report for the quarter ended March 31. The equipment is depreciated using the double-declining-balance method with a useful life of five years and $48,000 residual value.
3. Prepare a journal entry to record the depreciation and amortization calculated in requirement 2.
In: Accounting
1. Which one of the following is an overhead cost:
| A | All of these are overhead |
| B | Insurance |
| C | Office equipment |
| D | Travel |
2. Find the average annual value of a bulldozer that was purchased at $899,999.00 and the freight cost was $10,206. It currently has 10 years of useful life left and a salvage value of $65,000 an the tracks cost $15,000.
| A | $521,613 |
| B | $44,760 |
| C | $529,861 |
| D | $500,613 |
3. TRUE OR FALSE: Bidding procedures are usually fixed in a private
project bidding situation.
4. The premium that contractor must pay on a contract bond is based on:
| A | Bond rates |
| B | Duration of the project |
| C | All of these are a consideration for the bond premium |
| D | Total contract amount |
| E | Type of construction |
In: Operations Management
7. Michael Jackson's Strings uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:
Cost Retail
Beginning inventory $46,000 $63,000
Net purchases 154,000 215,000
Net markups 22,000
Net markdowns 35,000
Net sales 220,000
To the nearest thousand, estimated ending inventory using the conventional retail method is
A. $30,000.
B. $32,000.
C. $34,000.
D. $37,000.
8. Mario Brothers Company adopted the dollar-value LIFO inventory method on January 1, 2015. In applying the LIFO method, Mario Brothers uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:
Ending Inventory
At Current At Base
Year Cost Year Cost Cost Index
1/1/2015 $300,000 $300,000 1.00
12/31/2016 345,600 320,000 1.08
12/31/2017 420,000 350,000 1.20
Under the dollar-value LIFO method, the inventory at December 31, 2016, should be:
A. $351,600. D. $357,600.
B. $600,120. C. $350,000.
9. Thatch Fencing Company sold $46,000 of fencing to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Thatch uses the gross method of accounting for cash discounts.
What entry would Thatch make on April 12?
A.
Accounts receivable 45,540
Sales 45,540
B.
Accounts receivable 46,000
Sales 46,000
C.
Accounts receivable 46,000
Sales 45,540
Sales discounts 460
D.
Accounts receivable 45,540
Sales discounts 460
Sales 46,0004
10. Lingua Company reported the following pretax data for its first year of operations.
Net sales 7,340
Cost of goods available for sale 5,790
Operating expenses 1,728
Effective tax rate 40%
Ending inventories:
If LIFO is elected 618
If FIFO is elected 798
What's Lingua's net income if it elects LIFO?
A. $264
B. $440
C. $620
D. $372
11. When using the gross profit method to estimate ending inventory, it's not necessary to know
A. net purchases.
B. beginning inventory.
C. net sales.
D. cost of goods sold.
12. Tannis Design began 2015 with accounts receivable of $115,000. All sales are made on credit. Sales and cash collections from customers for the year were $780,000 and $700,000, respectively. Cost of goods sold for the year was $450,000. What was Tannis's receivables turnover ratio (rounded) for 2015?
A. 4.00
B. 2.90
C. 6.78
D. 5.03
13. San Juan Company had the following account balances at December 31, 2015, before recording bad debt expense for the year:
Accounts receivable $1,400,000
Allowance for uncollectible accounts (credit balance) 22,000
Credit sales for 2015 1,950,000
San Juan is considering the following approaches for estimating bad debts for 2015:
Based on 3% of credit sales
Based on 6% of year-end accounts receivable
What amount should San Juan charge to bad debt expense at the end of 2015 under each method?
A. Percentage of credit sales: $58,500; percentage of accounts receivable: $62,000
B. Percentage of credit sales: $117,000; percentage of accounts receivable: $95,000
C. Percentage of credit sales: $58,500; percentage of accounts receivable: $84,000
D. Percentage of credit sales: $36,500; percentage of accounts receivable: $62,000
In: Accounting
One alternative to accelerate oil well production is to install a booster pump at the wellhead to reduce the pressure drop between the oil reservoir and the oil gathering station (onshore) or production platform (offshore). Make an economic analysis to verify if the production increment (between with and without booster pump) is economically attractive. The following data from an oil well subsea boosting project is available: Subsea equipment installation cost: $ 1.5 million 1 MW (Mega Watts) Pump system unit cost: $ 25.0 million Deep-water vessel rent for pipeline laying: $ 40 million total cost Overhead cost: assume 10% to total investment cost The installation and construction of the boosting system will be performed in one year. The revenue of this project is generated by oil well production increment using the booting system. An increment of 5,000 bopd (barrels of oil per day) in the first year of operation (after one year for installation and construction) is predicted, then, it will decline by 10% every year for a study period of 10 years. For example, 5000 bopd (initial increment), then 4500 bopd (in the next year), 4050 bopd, 3645 bopd, etc. Assume the oil well operates 330 days per year. The remaining 30 days, the well will not produce because it will be in maintenance (also called workover). Assume the well will produce oil only (no water). The market value of this equipment will be negligible at the end of the 10-year study period. Use MARR = 20% Calculate the present worth (PW) for this project assuming an oil-selling price of $40 per barrel and a production cost of $15 per barrel. In addition, add a constant value of $5 million per year for energy cost to run the pump boosting system. Is this project economically attractive? Draw a cash flow diagram for this project
In: Other
1. Among the properties owned by Hagen Company are five buildings constructed from cement blocks. Hagen did not include these buildings for coverage under its property insurance policy because losses to these structures occur so infrequently. When losses do occur, Hagen Company simply pays for the losses through cash flow or current assets. Hagen’s method of dealing with losses to these buildings is called
Select one:
A. Self insurance.
B. Group self insurance.
C. Third-party administered plan.
D. Informal retention.
2. An exculpatory clause is
Select one:
A. A contractual provision that relieves one party from liability resulting from a negligent or wrongful act.
B. The intentional relinquishment of a known right.
C. The surety’s right to seek reimbursement from the principal for the surety’s payments.
D. The substitution of one party for another.
3. A retrospective rating plan
Select one:
A. Is a form of self-insurance.
B. Is insurance that is subject to a rating formula.
C. Is considered to be guaranteed-cost insurance.
D. Bases pricing on past loss experience.
4. Construction contracts typically hold the
Select one:
A. Landowner harmless for certain construction-related claims.
B. Eventual tenant of the premises harmless for construction defects.
C. Contractor harmless for any premises liability claims.
D. Contractor harmless for any negligence.
Please help answer all questions for a like. Thank you.
In: Finance