Since its opening in 1977, Ocean Park was the only theme park in Hong Kong. The park, owned by the Hong Kong government, is a nonprofit organization that aims to provide visitors a unique experience in entertainment, education, and conservation. In the absence of competition, Ocean Park had existed without direction and focus. When Hong Kong officials signed an agreement to bring Disneyland to Hong Kong in 1999, it seemed as if it would be the end of Ocean Park. In this unequal competition, Ocean Park emerged the surprise winner. Quickly sprucing up its act, it has managed to outperform Disneyland and has emerged as the number one amusement park in Hong Kong .

How was Ocean Park able to turn a threat into an opportunity?

Ocean park made the decision not to compete head to head with Disneyland. Will this strategy always work when local companies face multinational giants? Explain.

How can Ocean Park further capitalize on Disneyland’s presence? (hint: check out how other parks surrounding Disney, such as Sea World and Universal Studios, survive and thrive in

Anaheim, California, and Orlando, Florida.)

How can Hong Kong Disneyland turn around its lackluster performance?

Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units.

Phoenix Company’s actual income statement for 2017 follows.

Required:
1. Prepare a flexible budget performance report for 2017.

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Required information

[The following information applies to the questions displayed below.]

Alvarez Company’s output for the current period yields a $21,000 favorable overhead volume variance and a $61,800 unfavorable overhead controllable variance. Standard overhead applied to production for the period is $224,000.

Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any variances.

Journal entry worksheet

·        Record overhead applied to production and overhead variances.

Note: Enter debits before credits.

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Problem 12-9 Securities held-to-maturity; securities available for sale, trading securities and equity investments [LO12-1, 12-2, 12-3, 12-4, 12-5]

Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2018 and the first month of 2019. The only securities held by Amalgamated at October 1 were $55 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1 at face value and held in Amalgamated’s trading portfolio. The company’s fiscal year ends on December 31.

Required:
Prepare the appropriate journal entry for each transaction or event. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).)

• 1

  Record the purchase of 2 million preferred shares of Millwork Ventures Company for $63 million.

• 2

  Record the receipt of semiannual interest of $3.3 million from the Kansas Abstractors bonds.

• 3

  Record the purchase of 10% bonds of Holistic Entertainment Enterprises at their $120 million face value.

• 4

  Record the entry to adjust to fair value on the date of sale of the Kansas Abstractor bonds.

• 5

  Record the sale of the investment in Kansas Abstractors bonds.

• 6

  Record the purchase of 12% bonds of Household Plastics Corporation at their $40 million face value.

• 7

  Record the purchase of U.S. Treasury bonds for $7.5 million.

• 8

  Record the purchase of 4 million common shares of NXS Corporation for $54 million.

• 9

  Record the entry to adjust to fair value on the date of sale of the U.S. Treasury bonds.

• 10

  Record the sale of the Treasury bonds for $8.1 million.

• 11

  Record the receipt of cash dividends of $3 million from the Millwork Ventures Company preferred shares.

• 12

  Record the accrued interest.

• 13

  Record the entry to adjust to fair value for the Millwork Ventures preferred stock.

• 14

  Record the entry to adjust to fair value for the NXS Corporation common shares.

• 15

  Record the entry to adjust to fair value on the date of sale of the NXS Corporation common shares.

• 16

  Record the sale of the NXS Corporation common shares for $52 million.

Future value. The Portland Stallions professional football team is looking at its future revenue stream from ticket sales. ​ Currently, a season package costs $300 per seat. The season ticket holders have been promised this same rate for the next four years. Five years from now the organization will raise season ticket prices based on the estimated inflation rate of 3​%. What will the season tickets sell for in five ​years?

$:

In 2018, ABC Corp. had sales/revenue of $26,500,000, Costs of Goods Sold (COGS) of $14,500,000, Sales, General, and Administrative (SG&A) expense of $5,600,000, Depreciation expense of $1,000,000, and Interest expense of $400,000. Also assume that its average tax rate was 19%. What was ABC Corp.'s Earnings Before Interests and Taxes (or Operating Income) as of 2018?

q1) Asset Management Efficiency Ratio = Total Operating Revenue/Total Assets

a) explain the ratios and what happened from 2017 to 2019

Analyzing Unearned Revenue Disclosures
The following disclosures (excerpted) are from the September 2, 2018, annual report of Costco Wholesale Corporation.

The Company generally recognizes sales, net of returns, at the time the member takes possession of merchandise or receives services. When the Company collects payments from members prior to the transfer of ownership of merchandise or the performance of services, the amounts received are generally recorded as deferred sales, included in other current liabilities in the consolidated balance sheets, until the sale or service is completed. The Company reserves for estimated sales returns based on historical trends in merchandise returns and reduces sales and merchandise costs accordingly. The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one-year membership.

The Company’s Executive members qualify for a 2% reward on qualified purchases (up to a maximum reward of approximately $1,000 per year), which can be redeemed only at Costco warehouses. The Company accounts for this reward as a reduction in sales. The sales reduction and corresponding liability (classified as accrued member rewards in the consolidated balance sheets) are computed after giving effect to the estimated impact of non-redemptions, based on historical data. The net reduction in sales was $1,394, $1,281, and $1,172 in 2018, 2017, and 2016, respectively.

(a) Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?

Because Costco does not know how many of its members will continue to the end of the year, cash received from members is recorded as a liability and recognized as revenue only at year-end.

When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.

The company records revenue when the cash is received.

Because Costco has a refund policy, the company records revenue when the cash is received, less an allowance for expected membership terminations.

(b) Use the balance sheet information on Costco's Deferred Membership Fees liability account and its income statement revenues related to Membership Fees earned during fiscal 2018 to compute the cash that Costco received during fiscal 2018 for membership fees.
Total cash received (in $ millions) = $Answer

(c) Use the financial statement effects template to show the effect of the cash Costco received during fiscal 2018 for membership fees and the recognition of membership fees revenue for fiscal 2018.

Use negative signs with answers, when appropriate.

(e) Complete the following sentences:
Costco recorded sales of at least $_____ from the Company’s Executive members, during fiscal 2018.

At its current level of​ quantity, a perfectly competitive​ firm's marginal revenue is​ $2.50, its

short−run marginal cost is​ $2.50 and its long−run marginal cost is​ $2.00. Which of the following statements is​ true?

A. The firm is maximizing its long−run profit, but not its short−run profit.

B. The firm is maximizing its short−run profit, but not its long−run profit.

C. The firm should increase its production to maximize profit in the short−run.

D. The firm should decrease its production to maximize profit in the short−run.

If a perfectly competitive firm is producing the short−run profit−maximizing quantity and is earning negative economic​ profits, the firm should anticipate​ ________.

A. the market supply to decrease

B. new firms to enter the market

C. the market supply to increase

D. the market equilibrium price to decrease