Please construct 1 full page memo on Starbucks Co. Information must be relevant to the last 5 years. Please list the reference links used for conducting the research. Construct the memo answering the questions below.
In: Accounting
No matter what your business, to stay in business you have to attract and retain customers. How do you do that? One way is to deliver a quality product or service in a high-quality manner. In other words, it is a combination of what is offered and how it is offered that determines whether a buyer will become a loyal customer. Training is one way to make sure that employees’ technical skills and customer-service skills meet customer expectations. When making a business decision, two basic elements are typically considered: costs and benefits. In the case of training, the issues are: (1) how much does the training reduce costs? and (2) how much does the training increase revenues? If the training sufficiently reduces costs and/or increases revenues, then there is a strong business case to conduct the training. Your ability to identify the potential sources of revenue and costs and to estimate their levels can be an important business skill. It can be the basis by which you can successfully make the case for needed training for your employees.
1) Given your answers to the previous questions (1. How much does the training reduce cost? and 2) How much does the training increase revenues - no data necessary), estimate the combined impact on the bottom line of direct and indirect savings generated by training. Extrapolate this number over a one- or two-year time period.
2) As you have read, training can increase revenue. The revenue could come from increased quality of the customer experience due to the impact of training. Consider, as an example, the following table of customer survey responses before and after training. The number are percentages of customers in each satisfaction category six months before and six months after employees received their training. A key change is a reduction in the "Very dissatisfied-will never return" category of customers, which fel from 15 to 5 percent.
A) What will this 10-percent change mean to the bottom line? Assume that the avergae revenue renerated per month by a customer is $500. Also assume that you have 500 customers.
B) What is the increased revenue due to the training for the past six months?
C) What would be the revenue generated if you had 1,000 customers?
| Very dissatisfied-will never return | OK, but would return | Satisfied- would return | |
| before training | 15 | 15 | 70 |
| After training | 5 | 15 | 80 |
3) Make assumptions about the costs in each of these direct cost categories and any other direct costs you can think of. Also assume that you can expect a 10-percent reduction in each of these categories. Generate the direct cost savings estimate due to the training. Training can also impact the bottom line by reducing indirect costs. These are costs that may not be obvious, but that are still important. For example, the safety of work processes or equipment can be improved due to training if workers handle materials or equipment more safely. Employee turnover can also be reduced, because of improved job satisfaction due to the training.
4)Assume that training results in a 10-percent reduction in your turnover rate. Also, assume that the cost of a turnover is 1.5 times the departing employee’s salary. For a given average employee salary of your choosing, estimate the reduced costs due to the reduction in turnover.
In: Accounting
Is all of this correct?
Journal Entries
| Cash | 4000 | |
| Common Stock | 4000 | |
| Cash | 5000 | |
| Notes Payable | 5000 | |
| Rent Expense | 900 | |
| Cash | 900 | |
| Supplies | 450 | |
| Accounts Payable | 450 | |
| Equipment | 7200 | |
| Cash | 7200 | |
| Equipment | 2850 | |
| Cash | 1350 | |
| Accounts Payable | 1500 | |
| Prepaid Advertising | 375 | |
| Advertising Expense | 125 | |
| Cash | 500 | |
| Insurance Expense | 225 | |
| Cash | 225 | |
| Cash | 2625 | |
| Service Revenue | 2625 | |
| Cash | 5125 | |
| Unearned Service Revenue | 5125 | |
| Accounts Recievable | 1500 | |
| Service Revenue | 1500 | |
| Accounts Payable | 600 | |
| Cash | 600 | |
| Cash | 1300 | |
| Accounts Recievable | 1300 | |
| Dividends | 1000 | |
| Cash |
1000 |
Adjusting Entries and Closing Entries
| ADJUSTING ENTRIES | |||
| A1 | Interest Expense | 42 | |
| Interest Payable | 42 | ||
| A2 | Supplies Expense | 250 | |
| Supplies | 250 | ||
| A3 | Depreciation Expense | 167 | |
| Accumulated Depreciation-Equipment | 167 | ||
| A3b | Depreciation Expense | 40 | |
| Accumulated Depreciation-Equipment | 40 | ||
| A4 | Unearned Revenue | 1000 | |
| Service Revenue | 1000 | ||
| A5 | Accounts Recievable | 330 | |
| Service Revenue | 330 | ||
| A6 | Salaries and Wages Expense | 2060 | |
| Salaries and Wages Payable | 2060 | ||
| A7 | Utility Expense | 150 | |
| Utilities Payable | 150 | ||
| A8 | Income Tax Expense | 167 | |
| Income Tax Payable | 167 | ||
| CLOSING ENTRIES | |||
| C1 | Service Revenue | 5455 | |
| Income Summary | 5455 | ||
| C2 | Income Summary | 4126 | |
| Salaries and Wages Expense | 2060 | ||
| Depreciation Expense | 207 | ||
| Insurance Expense | 225 | ||
| Utilities Expense | 150 | ||
| Income Tax Expense | 167 | ||
| Interest Expense | 42 | ||
| Supplies Expense | 250 | ||
| Rent Expense | 900 | ||
| Advertising Expense | 125 | ||
| C3 | Income Summary | 1354 | |
| Retained Earnings | 1354 | ||
| C4 | Retained Earnings | 1000 | |
| Dividends | 1000 |
Worksheet
| JACKSON TUTORING SERVICES, INC. WORKSHEET 1/31/2018 | ||||||||||
| Unadjusted | Adjusted | |||||||||
| Trial Balance | Adjusting Entries | Trial Balance | Income Statement | Balance Sheet | ||||||
| Account Title | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit |
| Cash | 6,275 | 6,275 | 6,275 | |||||||
| Supplies | 450 | 250 | 200 | 200 | ||||||
| Accounts Rec. | 200 | 330 | 530 | 530 | ||||||
| Prepaid Advertising | 375 | 375 | 375 | |||||||
| Equipment | 10,050 | 10,050 | 10,050 | |||||||
| Accum. Depr. | 207 | 207 | 207 | |||||||
| Notes Payable | 5,000 | 5,000 | 5,000 | |||||||
| Interest Payable | 42 | 42 | 42 | |||||||
| Unearned Revenue | 5,125 | 1,000 | 4,125 | 4,125 | ||||||
| Accounts Payable | 1,350 | 1,350 | 1,350 | |||||||
| Utilities Payable | 150 | 150 | 150 | |||||||
| Inc. Taxes Payable | 167 | 167 | 167 | |||||||
| Sal. & Wages Pay. | 2,060 | 2,060 | 2,060 | |||||||
| Common Stock | 4,000 | 4,000 | 4,000 | |||||||
| Dividends | 1,000 | 1,000 | ||||||||
| Retained Earnings | 329 | |||||||||
| Service Revenue | 4,125 | 1,330 | 5,455 | 5,455 | ||||||
| Sal. & Wages Exp. | 2,060 | 2,060 | 2,060 | |||||||
| Depr. Exp. | 207 | 207 | 207 | |||||||
| Insurance Expense | 225 | 225 | 225 | |||||||
| Utilities Expense | 150 | 150 | 150 | |||||||
| Income Tax Exp. | 167 | 167 | 167 | |||||||
| Interest Exp. | 42 | 42 | 42 | |||||||
| Suppies Expense | 250 | 250 | 250 | |||||||
| Rent Expense | 900 | 900 | 900 | |||||||
| Advertising Exp. | 125 | 125 | 125 | |||||||
| 19,600 | 19,600 | 4,206 | 4,206 | 22,556 | 22,556 | 4,126 | 5,455 | 17,430 | 17,430 | |
| 1,329 | ||||||||||
Post Closing Trial Balance
| JACKSON TUTORING SERVICES, INC. | ||||
| Post-Closing Trial Balance | ||||
| 31-Jan-18 | ||||
| Account Title | Debit | Credit | ||
| Cash | $6,275 | |||
| Equipment | 10050 | |||
| Supplies | 200 | |||
| Prepaid Advertising | 375 | |||
| Accounts Recievable | 530 | |||
| Accumulated Depreciation | 207 | |||
| Accounts Payable | 1350 | |||
| Notes Payable | 5000 | |||
| Interest Payable | 42 | |||
| Salaries and Wages Payable | 2060 | |||
| Income Tax Payable | 167 | |||
| Utilities Payable | 150 | |||
| Unearned Revenue | 4125 | |||
| Common Stock | 4000 | |||
| Retained Earnings | $329 | |||
| $17,430 | $17,430 | |||
| Totals | ||||
These are the journal entries and the adjusting journal entries
| Issued common stock in exchange for $4,000 cash. | ||||||||
| Borrowed $5,000 by issuing a 2-year, 10% note payable to SunTrust Bank. | ||||||||
| Paid $900 for January rent. | ||||||||
| Purchased supplies on account for $450 from Traveler's Supply Company. | ||||||||
| Purchased equipment for $7,200 cash from DSI Computer Company. The equipment has a 3 year life and a $1,200 salvage value. | ||||||||
| Purchased additional equipment from Bebo's Office Supply Co., paying cash of $1,350 and putting $1,500 on account. The equipment has a 5 year life and $450 salvage value. | ||||||||
| Paid $125 for advertisements to run in the current month and $375 for ads to run in February-April. | ||||||||
| Paid the January insurance premium of $225. | ||||||||
| Performed services for $2,625 cash. | ||||||||
| Received cash advance of $5,125 for services to be performed on a 5- month contract beginning in January. | ||||||||
| Performed services and billed customers $1,500. | ||||||||
| Made a $600 payment on account to Traveler's Office Supply Company . | ||||||||
| Collected $1,300 from customers on account. | ||||||||
| Declared and paid dividends of $1,000 cash. | ||||||||
| Journalize transactions 1-14 on page 1 of the general journal. Label the entries 1-14. | ||||||||
| Post the journal entries to the ledger t-accounts using Excel formulas. Include the journal entry number as a posting reference. | ||||||||
| Prepare a worksheet formatting the cells in Excel and using the following information: | ||||||||
| 1 | Accrue interest expense on the note assuming that the date of the loan was January 2 (use 30/360 and round to the nearest dollar). | |||||||
| 2 | Supplies on hand at January 31 total $200. | |||||||
| 3 | Assume that all of the equipment was purchased at the beginning of January. Record January depreciation expense using the straight-line method (round to the nearest dollar). | |||||||
| 4 | The cash advance is earned ratably over the 5-month period. | |||||||
| 5 | The company has earned $330 of revenue that has not yet been billed to customers. | |||||||
| 6 | Jackson pays its employees on the first of every month. Salaries earned during the month of January total $2,060. | |||||||
| 7 | On January 29, Jackson received the current month's utility bill for $150. The bill is due on February 16. | |||||||
| 8 | Jackson estimates that the company will pay an income tax rate of 11%. | |||||||
In: Accounting
|
Please prepare a trial balance using the information given. You have been hired as an accountant for NFT Consulting Inc. This business was created when some friends decided to make use of their newly minted college degrees and go into business together. The business was created on November 1, 2017. The company will have a fiscal year end of October 31st. The initial formation transactions and early purchases for NFT Consulting Inc. resulted in the balances that are included in the first 2 columns of the Worksheet. (see the worksheet tab) |
|
| During November, the first month of operations, the following transactions occurred: | |
| Date | Event |
| 1-Nov | Paid $7,200 for 12 months rent on office space |
| 2-Nov | Purchased office furniture for $8,950. |
| 3-Nov | Purchased $11,354 of additional office supplies on account. |
| 8-Nov | Borrowed 20,000 from the bank for operating cash. The note has a 3% interest rate (simple interest) and is to be paid back in 4 years |
| 15-Nov | Received $10,800 from Fortuna Inc. for work to be performed over the next 12 months. |
| 20-Nov | Paid $1,560 for utilities. |
| 21-Nov | Performed services for various customers for $13,200 cash and another $18,100 on account. |
| 25-Nov | Paid $8,650 for purchases of supplies previously made on account. |
| 27-Nov | Paid salaries to employees totaling $5,200 for 1 week. |
| 30-Nov | Collected $12,300 as payment for amounts previously billed. |
| 30-Nov | Dividends of $3,000 were declared and paid. |
| At the end of November, the following additional information is available to help determine what adjustments are needed: | |
| 30-Nov | One month of the prepaid rent has been used up |
| 30-Nov | Supplies on hand are $8,150. |
| 30-Nov | One month of interest has accrued on the note payable for the bank loan. |
| 30-Nov | One month of the services for the Fortuna Inc. has been performed (see above). |
| 30-Nov | Salaries of $5,200 are paid every Friday (for a 5 day work week). November 30, 2017 was a Thursday. |
| 30-Nov | Additional work for customers of $9,580 has been performed during the last week of November but not yet billed |
| 30-Nov | Depreciation expense for the computer equipment is $140 and for the office furniture is $120 |
| Worksheet - NFT Consulting Inc | ||||||||||
| BEGINNING | NUMBERS | November | ENTRIES | UNADJUSTED TRIAL BALANCE | ADJUSTMENTS | ADJUSTED TRIAL BALANCE | ||||
| ACCOUNT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT |
| Cash | 221,400 | |||||||||
| Accounts Receivable | ||||||||||
| Supplies | 8,650 | |||||||||
| Prepaid Rent | ||||||||||
| Land | 40,000 | |||||||||
| Computer Equipment | 38,600 | |||||||||
| Accumulated Depreciation, Comp Equip | ||||||||||
| Office Furniture | ||||||||||
| Accumulated Depreciation, Off Furn | ||||||||||
| Accounts Payable | 8,650 | |||||||||
| Salaries Payable | ||||||||||
| Interest Payable | ||||||||||
| Unearned Revenue | ||||||||||
| Long-term Notes Payable | ||||||||||
| Common Stock | 300,000 | |||||||||
| Retained Earnings | ||||||||||
| Dividends | ||||||||||
| Service Revenue | ||||||||||
| Salaries Expense | ||||||||||
| Rent Expense | ||||||||||
| Supplies Expense | ||||||||||
| Maintenance Expense | ||||||||||
| Utilities Expense | ||||||||||
| Interest Expense | ||||||||||
| Depreciation Expense, Comp Equip | ||||||||||
| Depreciation Expense, Office Furniture | ||||||||||
| 308,650 | 308,650 | |||||||||
In: Accounting
The firm, competing in a very highly competitive market, is manufacturing and selling headphones. The firm’s total revenue and cost functions are:
Rq=q3+14q2+35q+40
Cq=13q3+20q2+19q+15
In: Economics
Alternative Inventory Methods
Frate Company was formed on December 1, 2018, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:
| Units | Unit Cost | |||
|---|---|---|---|---|
| January 1, 2019 (beginning inventory) | 4,400 | $5.00 | ||
| Purchases: | ||||
| January 6, 2019 | 5,100 | 6.00 | ||
| January 25, 2019 | 4,800 | 6.50 | ||
| February 17, 2019 | 4,200 | 7.00 | ||
| March 27, 2019 | 4,500 | 7.50 | ||
A physical inventory on March 31, 2019, shows 8,800 units on hand.
Required:
Prepare schedules to compute the ending inventory at March 31,
2019, under each of the following inventory methods.
1. FIFO
| FRATE COMPANY | |||
| Computation of Inventory Under FIFO Inventory Method | |||
| March 31, 2019 | |||
| Units | Unit cost | Total cost | |
| March 27, 2019 | |||
| February 17, 2019 | |||
| January 25, 2019 (portion) | |||
| March 31, 2019 inventory | |||
2. LIFO
| FRATE COMPANY | |||
| Computation of Inventory Under LIFO Inventory Method | |||
| March 31, 2019 | |||
| Units | Unit cost | Total cost | |
| Beginning inventory | |||
| January 6, 2019 (portion) | |||
| March 31, 2019 inventory | |||
3. Weighted average
| FRATE COMPANY | |||
| Computation of Inventory Under Weighted Average Inventory Method | |||
| March 31, 2019 | |||
| Units | Unit cost | Total cost | |
| Beginning inventory | |||
| January 6, 2019 | |||
| January 25, 2019 | |||
| February 17, 2019 | |||
| March 27, 2019 | |||
| Total | |||
| Weighted average cost | |||
| March 31, 2019 inventory | |||
In: Accounting
Suppose a marketing company wants to determine the current proportion of customers who click on ads on their smartphones. It was estimated that the current proportion of customers who click on ads on their smartphones is 0.65. How many customers should the company survey in order to be 94% confident that the margin of error is 0.22 for the confidence interval of true proportion of customers who click on ads on their smartphones? Answer: (Round up your answer to nearest whole number,do not include any decimals)
In: Statistics and Probability
Problem 9-5A (Part Level Submission) At December 31, 2015, Grand Company reported the following as plant assets. Land $4,147,000 Buildings $27,842,000 Less: Accumulated depreciation—buildings 10,769,000 17,073,000 Equipment 48,828,000 Less: Accumulated depreciation—equipment 5,126,000 43,702,000 Total plant assets $64,922,000 During 2016, the following selected cash transactions occurred. April 1 Purchased land for $2,195,000. May 1 Sold equipment that cost $786,000 when purchased on January 1, 2012. The equipment was sold for $471,600. June 1 Sold land purchased on June 1, 2006 for $1,456,000. The land cost $391,000. July 1 Purchased equipment for $2,309,000. Dec. 31 Retired equipment that cost $484,000 when purchased on December 31, 2006. No salvage value was received. Collapse question part (a) Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
In: Accounting
A cloud computing provider has 475 customers and a farm of 250 compute servers each having 4 cores. The company statistics indicate that at the peak hour the workload requirements of its customers are such that each requires {0,1,2,3,4} cores with uniform probability. Use the approximation based on Central Limit Theorem to answer the following questions.
1. Compute the outage probability, i.e., the probability that there are not a sufficient number of cores to meet customers demands.
2. The company decides to offer its customers a new super fast service which would speed up their quality of service by automatically doubling the number of cores allocated to each customer. Each customer would thus be allocated {0,2,4,6,8} cores with uniform probability. How many extra (4 core) machines should you need to buy in order support new service while maintaining the same outage probability ?
3. The server vendor is quite happy to sell you the number of 4 core servers determined in the previous question, but offers you a great deal on the same number of 8 core servers. If you purchased the same number of servers but now with 8 cores, how many super fast customers could you support same outage probability?
In: Statistics and Probability
Crane Clark opened Crane’s Cleaning Service on July 1, 2020. During
July, the following transactions were completed.
| July 1 | Crane invested $19,900 cash in the business. | ||||||||||||||||
| 1 | Purchased used truck for $8,800, paying $3,900 cash and the balance on account. | ||||||||||||||||
| 3 | Purchased cleaning supplies for $2,000 on account. | ||||||||||||||||
| 5 | Paid $1,800 cash on 1-year insurance policy effective July 1. | ||||||||||||||||
| 12 | Billed customers $4,500 for cleaning services. | ||||||||||||||||
| 18 | Paid $1,600 cash on amount owed on truck and $1,500 on amount owed on cleaning supplies. | ||||||||||||||||
| 20 | Paid $2,500 cash for employee salaries. | ||||||||||||||||
| 21 | Collected $3,400 cash from customers billed on July 12. | ||||||||||||||||
| 25 | Billed customers $6,000 for cleaning services. | ||||||||||||||||
| 31 | Paid $350 for the monthly gasoline bill for the truck. | ||||||||||||||||
| 31 |
Withdraw $5,600 cash for personal use.
|
In: Accounting