Financial Statements and Accounting Concept

Consider a healthcare organization with which you are familiar with and explain the difference between cash and accrual accounting in healthcare setting. Be sure to include a discussion of the revenue recognition and matching principles.

Internet Service provider Part 1 (Java Program)

An Internet service provider has three different subscription packages for its customers:

Package A: For $9.95 per month 10 hours of access are provided. Additional hours are $2.00 per hour.

Package B: For $13.95 per month 20 hours of access are provided. Additional hours are $1.00 per hour.

Package C: For $19.95 per month unlimited access is provided.

Write a program that calculates a customer’s monthly bill. It should ask the user to enter the letter of the package the customer has purchased (A, B, or C) and the number of hours that were used. It should then display the total charges.

Part 2

Modify the program you wrote for Part 1 so it also calculates and displays the amount of money Package A customers would save if they purchased Package B or C, the amount of money Package B customers would save if they purchased Package A or Package C, and the amount of money Package C customers would save if they purchased Package A or Package B . If there would be no savings, no message should be printed.

Entrepreneurs have been a driving force in the beverage industry for more than a century. In 1886, John Pem- berton began marketing Coca-Cola as an over-the- counter medicine, and in 1929 Charles Grigg developed Bib-Label Lithiated Lemon-Lime Soda, today known as 7UP. The beverage industry has always provided oppor- tunities for entrepreneurs, but in the current market, the cost of purchasing new ingredients and technologies and the intense competition make the odds of a successful new product introduction less likely than in the past.1
New beverages are developed every year. In some years, more than 3,000 new beverage products are brought to the market, but many do not succeed. Entre- preneurs who attempt to succeed in this industry must be aware of the changing consumer tastes and industry trends.

Caffeinated Products: Coffee, Soft Drinks, and Water

Specialty coffee outlets in the United States experienced explosive growth during the 1990s, growing from only 200 in 1989 to approximately 10,000 by 2000.3
The most well-known name in the gourmet coffee in- dustry is Starbucks, but few people realize the company began in 1971. The company was started by three en- trepreneurs in Seattle’s Pike Place Market. The focus was on coffee and equipment, including filters, grinders, and pots—no scones, no cappuccinos. By 1987, there were only six Starbucks outlets, but another entrepreneur, Howard Schultz, saw the potential of Starbucks after traveling to Italy and seeing the many coffee bars there. Schultz raised $3.8 million and bought the company. The company went public in 1992 at $17 per share and within five months the stock price had doubled.4 By 2001, Starbucks had expanded to 3,500 stores in North America and 800 stores overseas.5 By 2004, it had 7,569 stores worldwide.6 Starbucks is also equipping its stores for high-speed wireless Internet access, so customers can surf the Net on their laptops or Palm Pilot. The longer people linger at the stores, the more likely they are to order another latte.7
Many entrepreneurs are not willing to let Starbucks own the coffee market, though. Caribou Coffee Com- pany was started by entrepreneurs after they had climbed mountains in Alaska in 1990 and saw a herd of  caribou in the valley below. By 2004, the company was the nation’s second largest specialty coffee company, em- ploying more than 3,000 people. The Caribou Coffee outlets look like Alaskan lodges with fireplaces and wooden cabinetry.8
A recent trend toward caffeinated soft drinks began with Jolt. Jolt was introduced in 1985 by C. J. Rapp, president of Global Beverages. Jolt became a moderate success and a fixture in the marketplace at a time when most other companies were taking caffeine out of their products. Although similar products entered the mar- ket after Jolt, there were few other successes.9 How- ever, by the late 1990s, caffeinated soft drinks were common and other companies were introducing simi- lar products.10
By the mid-1990s, an entrepreneur had developed another successful idea. A college student, David March- eschi, who used to pull all-nighters cramming for tests, developed the idea for caffeinated water. Although other students drank coffee or soda to stay awake, Marcheschi did not like the taste of either. He wondered why some- one couldn’t caffeinate plain water. A few years later, he mentioned his idea to a friend whose father owned a beverage company and within a few weeks, the formula  beverage company and within a few weeks, the formula for Water Joe was developed. In 1995, Marcheschi formed a partnership with Nicolet Forest Bottling and the product was launched.11 A small article appeared in a local paper, and then the Milwaukee Sentinel ran a front-page story that was picked up by the Associated Press. Articles about Water Joe spread rapidly across the United States.12 By the end of 1996, Water Joe was ship- ping 400,000 bottles each week and annual sales were about $12 million.13 By the year 2000, Water Joe had be- come a subsidiary of Artesian Investments, a 16-year-old company in Green Bay, Wisconsin. The national account manager for Artesian Investments states, “What we’re giving people is a healthier alternative.”14 As of 2003, Water Joe had expanded into Germany and was being introduced in the United Kingdom.15
Other creative entrepreneurs decided to sell similar products over the Internet. The founders of Thinkgeek. Com sell a “Case O’ Buzz Water.” Each bottle of water has the same amount of caffeine as two extra large cups of coffee.16
Herbal Drinks and Green Teas

Herbal drinks first become popular in 1970 when Mor- ris J. Siegel founded Celestial Seasonings, Inc., which markets herbal teas.17 Siegel has been described as a hip- pie with a penchant for herbs, and this persona has had a positive effect on the company. The culture of non- conformity led to a great deal of creativity, and by the mid-1990s, Celestial Seasonings was the leading spe- cialty tea maker in the United States.18 By 1998, Celes- tial Seasonings had jumped into the fastest growing segment in the tea industry—the green tea category. The market for green tea increased 53 percent in 1997 and showed no signs of slowing. Much of the growth in sales was attributed to research reports indicating that green tea may lower the risk of certain types of cancer and bal- ance cholesterol.19 By the end of the decade, Celestial Seasonings had teamed up with the company that intro- duced Arizona Iced Tea and launched a line of ready-to- drink teas in a smart retro bottle that looks like the melding of a glass bottle and a tin can.20
In 2000, Celestial Seasonings merged with the Hain Food Group. As of 2004, Celestial Seasonings was sell- ing 1.2 billion cups of tea per year. Morris (Mo) Siegel retired to climb the last section of the Colorado moun- tains he had not yet climbed.21
John Bello, cofounder of SoBe Beverage Co., says his company is “taking the concept of herbal remedies to the mass market.” SoBe’s products include a variety of teas containing plant extracts that improve alertness. One of the company’s “energy tonics” allows drinkers “to perform all day and all night.” Other teas include echi- nacea, selenium, or bee pollen for additional therapeutic purposes.22 A new marketing approach was imple- mented for some of its products in 2000. Six of its products—Energy, Lizard Fuel, Lizard Lightning, Elixir, Green Tea, and Lemon Tea—were marketed in paper cans. Each octagonal paper can was adorned with the radical SoBe lizard. The colorful labels come in pink, or- ange, tan and bright yellow.23 As of 2004, SoBe bever- ages were available internationally. The company was selling its product in Canada, Mexico, the Bahamas, the United Kingdom, Barbados, and Guam.24
Richard Keer, president of The Natural Group, an im- porter of all-natural nonalcoholic beverages, has re- cently begun to market a product called Ame, a drink made with fruit juices, eastern herbs, and spring water. It is available in red, white, and rose and is packaged in 250-ml and 750-ml bottles. The company also sells Nor- folk Punch, a nonalcoholic beverage based on an ancient monastic recipe of 35 different herbal extracts like fennel, rosemary, and peppermint.25

Juice Bars and Smoothies
Proponents of smoothies contend that the beverage is one of the most promising new beverage items since spe- cialty coffees. The term smoothie is a generic term for a blender-made concoction typically made from fresh fruit, fruit juices, ice, and sherbet or yogurt. Optional add-ons include calcium, protein powder, bee pollen, or the herb gingko biloba. Smoothies are often sold at juice bars and are marketed as a lowfat, high-nutrition meal in a cup.26
One company, Smoothie King, has been in existence for 24 years, since long before the great demand for the product developed. Richard Leveille, vice president of franchise development, calls Smoothie King’s products the first and best available. Its product is not yogurt- or sherbert-based, but primarily fruit-based. Smoothie King makes daily deliveries to the Dallas Cowboys camp, and during spring training it delivers 200 to 300 smoothies a day to the New York Yankees in Tampa.27 By 2004, Smoothie King had 340 units in 34 states and also had three international units.28
Another company, Jamba Juice Co., was establishing itself as a leader in the juice bar segment. Founder, Kirk Perron, established his first juice bar when he was 26 years old. Perron states that his company did not “invent smoothies or squeeze-to-order juices,” but his company was the first to “unlock the code and create a sensory ex- perience in those products.” Jamba Juice sells its prod- ucts in an atmosphere of hot pinks, purples, greens, oranges, and natural woods.29 By December 2004, the company had 430 units, with locations in airports and  oranges, and natural woods.29 By December 2004, the company had 430 units, with locations in airports and on college campuses.30

Duiscussion Questions

Using demographic segmentation, segment the market for

a. Water Joe

b. Celestial Seasonings tea

c. Smoothies

d. the green tea industry

Using benefit segmentation, segment the market for

a. Water Joe

b. Koppla

c. Smoothies

d. the green tea industry

The rapid growth of Water Joe fueled the creation    of the caffeinated water industry in 1996. How long do you expect the rapid growth of this industry to continue?

Identify potential market segments for Ame and the energy tonic, the products of SoBe Beverage Co.

What impact do entrepreneurs have on the beverage industry?

What national trend would be beneficial for Celestial Seasonings but detrimental for Water Joe?

You have been asked to assist the management of Ironwood Corporation in arriving at certain decisions. Ironwood has its home office in Michigan and leases factory buildings in Wisconsin, Minnesota, and North Dakota, all of which produce the same product. Ironwood's management provided you with a projection of operations for next year, as follows.

The sales price per unit is $5.

Due to the marginal results of operations of the factory in North Dakota, Ironwood has decided to cease its operations and sell that factory's machinery and equipment by the end of this year. Ironwood expects that the proceeds from the sale of these assets would equal all termination costs. Ironwood, however, would like to continue serving most of its customers in that area if it is economically feasible and is considering one of the following three alternatives:

• Expand the operations of the Minnesota factory by using space presently idle. This move would result in the following changes in that factory's operations.

Under this proposal, variable costs would be $2 per unit sold.

• Enter into a long-term contract with a competitor that will serve that area's customers. This competitor would pay Ironwood a royalty of $1.1 per unit based on an estimate of 29,000 units being sold.

• Close the North Dakota factory and not expand the operations of the Minnesota factory.

Total home office costs of $101,000 will remain the same under each situation.

Required:

To assist the management of Ironwood Corporation, complete the following schedule computing Ironwood's estimated operating profit from each of the following options:

a. Expansion of the Minnesota factory.

b. Negotiation of the long-term contract on a royalty basis.

c. Shutdown of the North Dakota operations with no expansion at other locations.

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.

Average hourly billing rates are auditing $85, tax $94, and consulting $105.

Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.

Average hourly billing rates are auditing $81, tax $93, and consulting $102.

Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,450 1,840 2,330 2,710 Tax 3,130 2,650 2,300 2,800 Consulting 1,640 1,640 1,640 1,640 Average hourly billing rates are auditing $84, tax $94, and consulting $105. Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Of all customers purchasing automatic garage-door openers, 60% purchase a chain-driven model. Let X = the number among the next 15 purchasers who select the chain-driven model.

(a) What is the pmf of X?

h(x; 6, 15, 60)

b(x; 15, 0.6)

b(x; 15, 0.4)

nb(x; 15, 0.6)

h(x; 9, 15, 60)

nb(x; 15, 0.4)

(b) Compute P(X > 12). (Round your answer to three decimal places.)

P(X > 12) =

(c) Compute P(9 ≤ X ≤ 12). (Round your answer to three decimal places.)

P(9 ≤ X ≤ 12) =

d) Compute μ and σ2.

μ =

σ2 =

e) If the store currently has in stock 12 chain-driven models and 7 shaft-driven models, what is the probability that the requests of these 15 customers can all be met from existing stock? (Round your answer to three decimal places.)

You may need to use the appropriate table in the Appendix of Tables to answer this question.

Georges Hotel has the following sales procedures: The hotel uses duplicated and pre-numbered guest checks to record customers’ orders; the manager is in charge of monitoring the guest checks. She stores them in a storage container which is kept locked until she is ready to issue them to the servers. At the beginning of each shift, the manager issues the guest checks to the servers and records the amount given to each person on a blank sheet of paper. The server takes the order from the customers and records the information on the guest checks. She then presents the kitchen with one copy of the guest check for them to prepare the order and she keeps the other copy to be handed in at the end of the shift. The server informs the cashier of the order by word of mouth. In the event that there were any errors during the shift, servers are allowed to destroy the guest checks.

1. Identify three problems in the sales procedure of the Hotel, explain how they could be detrimental and suggest a control procedure that could be used to address each problem

2. Name three key personnel normally involved in a Hotel’s front office accounting functions. Of the three, chose one and briefly describe their role.

1) The number of students taking the Scholastic Aptitude Test (SAT) has risen to an all-time high of more than 1.5 million. Students are allowed to repeat the test in hopes of improving the score that is sent to college and university admission offices. The number of times the SAT was taken and the number of students are as follows. (HINT: This is a Discrete Probability Distribution Problem) Number of Times SAT is taken Number of Students 1 721,769 2 601,325 3 166,736 4 22,299 5 6,730 a. Let x be a random variable indicating the number of times a student takes the SAT. Show the probability distribution for this random variable. b. What is the probability that a student takes the SAT more than one time? c. What is the probability that a student takes the SAT three or more times? d. What is the expected value of the number of times the SAT is taken? What is your interpretation of the expected value? e. What is the variance and standard deviation for the number of times the SAT is taken?

2) In San Francisco, 30% of workers take public transportation daily. In a sample of 10 workers, a. Clearly state what the random variable in this problem is? b. What is an appropriate distribution to be used for this problem and why? c. What is the probability that exactly three workers take public transportation daily? d. What is the probability that NONE of the workers take public transportation daily? e. What is the probability that more than five workers take public transportation daily? f. What is the probability that less than seven workers take public transportation daily? g. What is the probability at least two but no more than eight workers take public transportation daily?

3) In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically, one in four such customers chooses to buy life insurance from this agent. You may treat this as a binomial experiment. a. What is the probability of success? b. What is the total number of trials? c. Create a probability distribution table which includes probability of each possible outcome. Also create the cumulative probability column. d. What is the probability that exactly five customers will buy life insurance from this agent in the coming month? e. What is the probability that no more than 10 customers will buy life insurance from this agent in the coming month? f. What is the probability that at least 20 customers will buy life insurance from this agent in the coming month? g. Determine the mean and standard deviation of the number of customers who will buy life insurance from this agent in the coming month? h. What is the probability that the number of customers who buy life insurance from this agent in the coming month will lie within two standard deviations of the mean?

4) During the period of time that a local university takes phone-in registrations, calls come in at the rate of one every two minutes. a. Clearly state what the random variable in this problem is? b. What is an appropriate distribution to be used for this problem and why? c. What is the expected number of calls in one hour? d. What is the probability of receiving three calls in five minutes? e. What is the probability of receiving NO calls in a 10-minute period? f. What is the probability of receiving more than five calls in a 10-minute period? g. What is the probability of receiving less than seven calls in 15-minutes? h. What is the probability of receiving at least three but no more than 10 calls in 12 minutes?

5) The annual number of industrial accidents occurring in a particular manufacturing plant is known to follow a Poisson distribution with mean 12. a. What is the probability of observing of observing exactly 12 accidents during the coming year? b. What is the probability of observing no more than 12 accidents during the coming year? c. What is the probability of observing at least 15 accidents during the coming year? d. What is the probability of observing between 10 and 15 accidents (including 10 and 15) during the coming year? e. Find the smallest integer k such that we can be at least 99% sure that the annual number of accidents occurring will be less than k.