Which of the following accounts is increased by a debit?

Accumulated Depreciation

Federal Income Tax Withheld

Prepaid Insurance

Unearned Revenue

Explain why a firm maximizes its profits by producing the level of output at which marginal revenue equals marginal costs.

Considering you are starting a social venture. Where will the funding come from? What will be the initial investment? And How revenue will be spent?

Some hotels make money with dynamic pricing daily. Please list and describe three strategies for increasing room revenue.

Describe nested control limit ( system of seat allocation) and state its importance to maximizing expected revenue in a stochastic demand.

Operating cash inflows   Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that would otherwise last 5 more years. The new lathe is expected to have a​ 5-year life and depreciation charges of $2,020 in Year​ 1; $3,232 in Year​ 2; $1,919 in Year​ 3; $1,212 in both Year 4 and Year​ 5; and $505 in Year 6. The firm estimates the revenues and expenses​ (excluding depreciation and​ interest) for the new and the old lathes to be as shown in the following table

. The firm is subject to a 40% tax rate on ordinary income.

a. Calculate the operating cash inflows associated with each lathe.​ (Note: Be sure to consider the depreciation in year​ 6.)

b. Calculate the operating cash inflows resulting from the proposed lathe replacement.

c. Depict on a time line the incremental operating cash inflows calculated in part b.

a. Calculate the operating cash inflows associated with the new lathe​ below:  ​(Round to the nearest​ dollar.)

​(Round to the nearest​ dollar.)

​(Round to the nearest​ dollar.)

​(Round to the nearest​ dollar.)

​(Round to the nearest​ dollar.)

1.)During April, Elsa Corporation budgeted for 27,000 customers, but actually served 23,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.10q

Wages and salaries: $33,300 + $1.10q

Supplies: $0.70q

Insurance: $8,600

Miscellaneous expense: $3,700 + $0.40q

Prepare the company's flexible budget for April based on the actual level of activity for the month.

2.)Buehler Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 3,400 meals, but the diner actually served 3,200 meals. The diner's director has provided the following cost formulas to use in budgets:

                                               Fixed Element per Month Variable Element per Month

Groceries …………………….. $0 $2.80

Kitchen Operations………….. $5300 $1.75

Administrative expense …….. $3600 $0.75

Fundraising expenses………… $1500 $0

Compute the activity variance for administrative expenses caused by serving less meals than expected. State answer as positive number.

3.)Gettys Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 24,000 customers, but actually served 28,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

                                                 Fixed Element per Month Variable Element per Month

Revenue …………………….. $0 $4.90

Wages and Salaries………… $29900 $1.90

Supplies………………. …….. $0 $0.70

Insurance…………..………… $9100 $0

Misc Expense…………………. $5500 $0.10

Compute the revenue activity variance. State your answer as a positive.

4.)Gettys Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 24,000 customers, but actually served 28,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

                                                     Fixed Element per Month Variable Element per Month

Revenue …………………….. $0 $4.90

Wages and Salaries………… $29900 $1.90

Supplies………………. …….. $0 $0.70

Insurance…………..………… $9100 $0

Misc Expense…………………. $5500 $0.10

Compute the total expense activity variance. State your answer as a positive.

5.) Kaylar Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000 patient-visits, but its actual level of activity was 2,900 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

                                                 Fixed Element per Month Variable Element per Month

Revenue …………………….. $0 $37.20

Personal Expenses…………. $27600 $11.30

Medical Expenses………….. $1500 $6.80

Occupancy Expenses…….... $6200 $1.70

Administrative Expenses…... $3600 $0.30

Actual results for September:

Revenue …………………….. $105010                                   

Personal Expenses…………. $61020                                   

Medical Expenses………….. $22120                                   

Occupancy Expenses…….... $10930                                 

Administrative Expenses…... $4570

Compute the total Revenue variance (due to a difference in the actual amount collected per customer from expected). State answer as a positive.

Scuttlebutt Publishers Corporation was incorporated on June 1, 2020. The company had the following transactions during June:

Part A

a. Issued common stock for $10,000 cash

b. Purchased equipment for $6,000 on credit

c. Purchased $750 of supplies on credit. These are expected to last three months (record as unused supplies)

d. Paid two months of newspaper advertising for $500 (record as prepaid advertising expense)

e. Collected $12,000 of three‐month subscription revenue for its ONLINE REVIEW magazine, effective June 1 (record as unearned subscription revenue)

f. Paid the following expenses in cash: telephone, $350; rent for

June, $500

g. Collected $5,000 revenue in cash from advertisers for the June edition of ONLINE REVIEW magazine

h. Paid half of the equipment purchased June 1

i. Paid $2,000 for supplies purchased

j. Paid the following expenses in cash: telephone, $250; salaries,

$3,000

k. Received a $200 bill for electricity used during the month

(recorded as Utilities Expense).

Required:

1. Create general ledger T‐accounts for the following: Cash, Prepaid Advertising, Unused Supplies, Equipment, Accounts Payable, Unearned Subscriptions Revenue, Common Stock, Other Revenue, Rent Expense, Salaries Expense, Supplies Expense, Telephone Expense, and Utilities Expense. General ledger account numbers are not needed. (These are created on the template already.)

2. Prepare journal entries to record the June transactions. Descriptions are not needed.

3. Post the entries to general ledger T‐accounts and calculate balances at June 30, 2020.

Part B

At June 30, the following additional information is available.

l. The June portion of advertising paid in transaction (c) has expired.

m. One month of the subscriptions revenue collected June 5 has been earned.

n. A physical count indicates that $100 of supplies is still on hand.

o. $200 of commission expense is owed on the June portion of the subscriptions revenue.

p. Two days of salary for June 29 and 30 are unpaid, amounting to $600.

q. The equipment purchased in transaction (b) has an estimated useful life of 5 years.

r. Income taxes payable at June 30 amount to $50.

Required:

4. Open additional general ledger T‐accounts for the following: Accumulated

Depreciation – Equipment, Salaries Payable, Income Taxes Payable,

Subscription Revenue, Advertising Expense, Commissions Expense,

Depreciation Expense – Equipment, and Income Taxes Expense. (These are already setup on the template.)

5. Prepare all necessary adjusting entries at June 30, 2020. General ledger account numbers and descriptions are not necessary, but show depreciation calculations.

6. Post the entries to the general ledger T‐accounts and calculate balances.

7. Prepare an adjusted trial balance at June 30.

8. Assume that the company’s year‐end is June 30. Prepare an income statement, statement of changes in equity, and balance sheet.

9. Prepare closing entries.

10. Prepare a post-closing trial balance.