We learn that business-type activities of governments are accounted for in a fashion similar to those carried out by businesses. It is easy to understand that accounting for these services is done on a full accrual basis of accounting; however, give your opinion on the way in which this integrates with the modified basis of accounting used by governmental funds. Use the textbook and GASB materials to support your position.

• Analyze the various types of business-type funds used in governmental units, and provide an example of when each is appropriate. In developing your initial discussion post and in commenting on your classmates’ responses, consider the city, town, or county selected for the continuing problem or perhaps from published material from your home state or city.

Amy and Lester are the owners of The Hardware Store on main street in a large town. Without consulting Amy, Lester hires an accountant to prepare a formal Balance Sheet, Income Statement, and Statement of Cash Flows for The Hardware Store. Amy understands the importance of having a Balance Sheet and Income Statement, but she does not understand the importance of having a Statement of Cash Flows. Amy reasons that examining the Cash account in the General Ledger is sufficient to know where the cash came from and where it was spent. Presume you are the accountant that was hired by Lester. It is your task to explain to Amy the purpose of the Statement of Cash Flows along with its uses and limitations. Please make your initial post your response to Amy.

In a marginal/differential analysis, I have two decision options available for the upcoming year:

1. Keep open my existing arcade business only and not expand, or 2. expand business by opening a second location across town

If opened, the second locaiton's staff wages would be the same percentage of sales as the original location. The opening of the second location is estimated to result in a 15% increase in sales for the original location.

Question...

I have calculated the breakeven point (in units). If I multiply the breakeven by the price per unit, is that number supposed to cover my variable expenses, or my fixed expenses? How do I use that breakeven info. to determine if the decision to expand is good or not?

City Q has an average water consumption of 22000 m3 / day. Jar tests have indicated that 33 mg / L of hydrated aluminum sulphate "alum" [Al2 (SO4) 3.14H2O] is the optimum dosage required to treat the water supply to this town. The additional alkalinity used is HCO3-. The natural alkalinity in the untreated water source is 57 mg / L as CaCO3. Use the coagulation reaction to:
a. Determine the amount of coagulant used per day (in kg / day)
b. Determine the amount of precipitant generated per day (in kg / day).
c. How much alkalinity is being consumed during the coagulation / flocculation process (in mg / L CaCO3)? Is the natural alkalinity level adequate?

A CSTR activated sludge system is being designed for the Fulton Fish Processing Plant. The flow is relatively small (0.25 mgd), but the wastewater is strong due to all of the fish waste (BOD5 = 4500 mg/L). Primary settling removes 20% of the BOD5. In order to discharge to the town sewer the BOD5 must be reduced to a concentration that is 95% of the influent. What is the Dimensions of the basin assuming a 3:1 L:W ratio. Also, what is the sludge production rate?

Design Parameters

θc = 10 days

X = 2100 mg VSS/L

MLVSS is 75% of MLSS

Aeration Basin = 20 ft deep

Yobs = 0.3 mg MLSS/mg BOD5

Recycle Ratio = 50%

4. Which of the following pricing practices represents price discrimination? Explain.

a. Local businesses in a small college town offer a 10% discount to anyone showing a student ID card.

b. Fred’s Fridges advertises a one-day sale on refrigerators. The ad specifies that no phone orders are accepted and that the buyer must transport the refrigerator.

c. A hardback copy of the last Harry Potter book sold for $30 at an independent bookstore; but for $25 at the local outlet of a national bookstore chain.

d. Freshman tuition and fees at Penn State-University Park for academic year 2018-2019 was about $18,000 for Pennsylvania residents and $35,000 for out-of-state students (a pricing pattern that is typical of state universities.)

Read the following:

Bill Smith, after a period of great self-reflection and introspection, went to see his boss with the following information and ultimately a request to transfer. Bill was shocked to look in the mirror and realize he was middle aged and still only in the middle income bracket of society. In addition, he was tired of living in a large city, so he wanted to be transferred to a small town. And finally, along with his transfer, he expected to receive a large raise.

Answer these questions:

• What do you think could be a major communication problem(s) in this scenario?
• How can these communication issues be solved?
• How could a communication problem between Bill Smith and his boss affect management actions?

One major advantage of corporate ownership is limited liability of shareholders. Let's say that Emma is the primary shareholder of a family based corporation that owns five laundromats in town. Emma's company needs to borrow $350,000 from the bank to expand its business. As President, she signs a promissory note with the bank on behalf of the corporation. The banker also asks that she sign another document in which she is personally liable for the loan in the event the corporation cannot repay it. The three other shareholders, Tom, James and Linda, do not sign the paper to be personally liable. If the company goes bankrupt and the bank loan is not paid, is Emma personally liable to the bank for the balance on the note or is she not liable since the loan was given to the corporation?

Conch Republic Electronics Part 1

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company's finance department.

One of the major revenue-producing items manufactured by Conch Republic is a smart phone. Conch Republic currently has one smart phone model on the market, and sales have been excellent. The smart phone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smart phone that has all the features of the existing smart phone but adds new features such as WiFi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smart phone.

Conch Republic can manufacture the new smart phones for $215 each in variable costs. Fixed costs for the operation are estimated to run $6.1 million per year. The estimated sales volume is 155,000, 165,000, 125,000, 95,000, and 75,000 per year for the next five years, respectively. The unit price of the new smart phone will be $520. The necessary equipment can be purchased for $40.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $6.1 million.

As previously stated, Conch Republic currently manufactures a smart phone. Production of the existing model is expected to be terminated in two years. If Conch Republic does not introduce the new smart phone, sales will be 95,000 units and 65,000 units for the next two years, respectively. The price of the existing smart phone is $380 per unit, with variable costs of $145 each and fixed costs of $4.3 million per year. If Conch Republic does introduce the new smart phone, sales of the existing smart phone will fall by 30,000 units per year, and the price of the existing units will have to be lowered to $210 each. Net working capital for the smart phones will be 20 percent of sales and will occur with the timing of the cash flows for the year; for example, there is no initial outlay for NWC, but changes in NWC will first occur in Year 1 with the first year's sales. Conch Republic has a 35 percent corporate tax rate and a required return of 12 percent.

Shelley has asked Jay to prepare a report that answers the following questions.

Conch Republic Electronics Part 2

Shelley Couts, the owner of Conch Republic Electronics, had received the capital budgeting analysis from Jay McCanless for the new smart phone the company is considering. Shelley was pleased with the results, but she still had concerns about the new smart phone. Conch Republic had used a small market research firm for the past 20 years, but recently the founder of that firm retired. Because of this, she was not convinced the sales projections presented by the market research firm were entirely accurate. Additionally, because of rapid changes in technology, she was concerned that a competitor could enter the market. This would likely force Conch Republic to lower the sales price of its new smart phone. For these reasons, she has asked Jay to analyze how changes in the price of the new smart phone and changes in the quantity sold will affect the NPV of the project.

Shelley has asked Jay to prepare a memo answering the following questions.

QUESTIONS

1.What is the payback period of the project?

2.What is the profitability index of the project?

3.What is the IRR of the project?

4.What is the NPV of the project?

5.How sensitive is the NPV to changes in the price of the new smart phone?

6.How sensitive is the NPV to changes in the quantity sold of the new smart phone?

PLEASE ATTATCH EXCEL FILE FOR ANSWER THANK YOU!!!!!