The distance a student lives (in miles) from their classroom is approximately normally distributed with a mean of 5 miles and a standard deviation of 1.5 miles. Use the normal table to find the probabilities.

a) How far away do the closest 15% of students live?

b) What is the probability that a student will live less than 7 miles away?

c) What is the probability that a student will live further away than 3 miles

or less than 7 miles away?

How to make a Revenue Recognition memo with this information?

Background: Using Implementation Guidance Heavenly Tours Heavenly Tours (HT) was the brainchild of four college friends: Bart, Ava, Carla and Dave. They wanted to create a one-stop, high-touch, discounted tour experience for visitors to two local theme parks. Park Survival provides various simulated survival experiences. Park Adrenaline provides numerous adventures guaranteed to provide visitors with adrenaline rushes. Bart is responsible for managing the relationship with both parks and obtaining discounted admissions for HT’s customers. Ava is responsible for the tour guides, who help customize the experience for visitors. Carla is responsible for working with high-end restaurants in the area surrounding the parks to obtain discounts on food and beverages. Dave is responsible for merchandise, which can be sold to HT’s customers. Historically, HT has reported all cash collected as revenue. A private investor is requesting financial information prepared in accordance with generally accepted accounting principles before investing in HT. The investor has indicated a particular interest in HT’s total revenues. The four friends are meeting with their local accountant to discuss next steps. The accountant informs them they will need to analyze each revenue stream to determine whether HT is acting as a principal or an agent. The accountant states this determination is necessary for proper accounting treatment because when a principal satisfies a performance obligation, the gross amount of consideration is recorded as revenue; however, when an agent satisfies a performance obligation, only the amount of the fee or commission earned is recorded as revenue. Background: The accountant asked Bart to explain the relationship with both parks. Bart explained that he had been able to obtain a 15% discount from Park Survival. HT customers can access Park Survival’s website and use a discount password provided by HT. Under this agreement, HT’s customers are charged 90% of the full entrance price on their credit card when their order is accepted on Park Survival’s website. Once the order is processed on Park Survival’s website, the customer is given a pass that can be used for entrance to Park Survival and 5% is remitted to HT. The negotiations with Park Adrenaline had been more difficult because it was a newer park and in need of cash. Accordingly, HT purchased 100 passes for 90% of the face value. These passes are good for one year from the date of purchase. Any passes that are not used during the year would simply expire. HT has obtained the right to each pass purchased to provide the pass holder with access to the park. HT is free to sell these passes to its customers at any price, as long it doesn’t exceed the face value of the pass. The customer pays an agreed-upon amount when an order is accepted on HT’s website. Park Adrenaline retained the full responsibility for fulfilling its obligation to customers who entered the park with a pass purchased from HT.

ASSIGNMENT REQUIREMENTS:

Read ASC 606-10-55-36 through 40 in ASC 606, Revenue from Contracts with Customers, discussing implementation guidance for principal versus agent determination.

Review the examples in ASC 606-10-55-316 through 334F.

1. For each park, determine if HT is a principal or an agent and, accordingly, how the revenue should be recorded.

2. Prepare a professional accounting research memorandum in proper form with reference to the appropriate sections of the FASB codification.

3. In the memo provide a thorough explanation of your conclusions and the rationale behind your conclusion referencing the appropriate sections of the FASB codification.

Using the HotelDB tables, provide the following result as a screen image.

WRITE SQL to retrieve rows from any hotel with Family room types and price less than $150.

use hoteldb;
CREATE TABLE HOTEL
( hotelNo numeric primary key
, name varchar(40)
, address varchar(40)
, city varchar(200)
);
CREATE TABLE ROOM
( roomNo numeric Primary Key
, hotelNo numeric References HOTEL
, type varchar(20)
, price dec(9,2)
);

CREATE TABLE GUEST
( guestNo numeric primary key
, name varchar(40)
, address varchar(40)
);

CREATE TABLE BOOKING
( hotelNo numeric REFERENCES Hotel
, guestNo numeric REFERENCES Guest
, dateFrom date NOT NULL
, dateTo date
, roomNo numeric REFERENCES ROOM
);

INSERT INTO HOTEL VALUES (1,'Hilton Hotel','123 Main st','New Jersey');
INSERT INTO HOTEL VALUES (2,'Holiday Inn','50 3rd Ave.', 'New York');
INSERT INTO HOTEL VALUES (3,'Governor Hotel','8243 Berkley Sq.','London');
INSERT INTO HOTEL VALUES (4,'New World Hotel','30 East River Rd', 'Hong Kong');
INSERT INTO HOTEL VALUES (5,'Santos Hotel','15 Main Rd', 'Philippines');

insert into room values (1,1,'Family',200);
insert into room values (2,1,'Family',200);
insert into room values (3,1,'Single',100);
insert into room values (4,1,'Single',100);
insert into room values (5,2,'Family',80);
insert into room values (6,2,'Family',85);
insert into room values (7,2,'Family',80);
insert into room values (8,3,'Single',35);
insert into room values (9,3,'Double',115);
insert into room values (10,3,'Double',115);
insert into room values (11,3,'Family',150);
insert into room values (12,4,'Single',30);
insert into room values (13,4,'Single',30);
insert into room values (14,4,'Single',30);
insert into room values (15,4,'Double',90);
insert into room values (16,4,'Double',90);
insert into room values (17,4,'Double',90);
insert into room values (18,4,'Family',110);
insert into room values (19,4,'Family',110);
insert into room values (20,5,'Double',38);
insert into room values (21,5,'Double',38);
insert into room values (22,5,'Single',32);
insert into room values (23,5,'Single',32);

insert into guest values (1,'John Doe','Los Angeles');
insert into guest values (2,'Mary Jane','New York');
insert into guest values (3,'Hank Kim','London');
insert into guest values (4,'Bob Jones','London');
insert into guest values (5,'Paul John','New York');
insert into guest values (6,'Ann Smith','New York');
insert into guest values (7,'James Mann','London');
insert into guest values (8,'Mary Mann','London');
insert into guest values (9,'Jim Jones','New York');
insert into guest values (10,'Tom Jones','Los Angeles');
insert into guest values (11,'Jimmy Johnson','Boston');
insert into guest values (12,'Harry Coleman','Dallas');
insert into guest values (13,'Bob James','Los Angeles');
insert into guest values (18,'John Mary','London');
insert into guest values (21,'Jeff Bridges','London');
insert into guest values (23,'Larry Cohen','New York');

Prior to adjustment at the end of the year, the balance in Trucks is $302,210 and the balance in Accumulated Depreciation—Trucks is $100,920. Details of the subsidiary ledger are as follows: Estimated Accumulated Depreciation at Miles Operated Truck No. Cost Residual Value Useful Life Beginning of Year During Year 1 $83,960 $15,360 245,000 miles — 20,600 miles 2 51,050 5,930 300,800 miles $14,700 33,800 miles 3 77,486 12,910 201,800 miles 62,180 8,100 miles 4 89,714 22,010 241,800 miles 24,040 22,500 miles A. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round rate per mile answers to the nearest cent. B. Journalize the entry on December 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

Central Adventures

Fatima Hopkins, the CEO of Central Adventures, is having difficulties with all three of her top management level employees. With one manager making questionable decisions, another threatening to leave, and the third likely ‘in the red’, Fatima is hoping there is a simple answer to all her difficulties. She is asking you (her accountant) for some advice on how to proceed.

Central Adventures owns and operates three amusement parks in Michigan: Funland, Waterworld, and Treetops. Central Adventures has a decentralized organizational structure, where each park is run as an investment center. Park managers meet with the CEO at least once annually to review their performance, where each park manager’s performance is measured by their park’s return on investment (ROI). The park manager then receives a bonus equal to 10% of their base salary for every ROI percentage point above the cost of capital.

Fatima’s first difficulty is with the Funland park. Funland is an outdoor theme park, with twelve roller coaster rides and several other attractions. This park has first opened 1965, and most of the rides have been in operation for 20+ years. Attendance at this park has been relatively stable over the past ten years. The park manager of Funland, Janet Lieberman, recently shared with Fatima a proposal to replace one of their older rides with a new roller coaster, a hybrid steel and wood roller coaster with a 90 degree, 200 foot drop and three inversions. The proposal indicated that the ride would cost $8,000,000 with an estimated life of 20 years. In addition, this new style of coaster would require additional maintenance and insurance, costing $125,000 each year. However, it projected that this new attraction would boost attendance, earning the park an additional $1,190,000 per year in revenues. Janet ultimately decided not to invest in this new attraction. Fatima (doing a quick mental calculation) saw that the investment had a payback period of eight years—much shorter than the life of the roller coaster—and is perplexed at Janet’s decision.

The second dilemma concerns the Waterworld park. Waterworld is an indoor water park, operating year-round. Run by park manager David Copperfield, Waterworld was built in 2016 and has increased attendance by 20% every year since. David recently sent you an email complaining that, based on the current bonus payout schedule, Janet Lieberman’s bonus last year was significantly higher than his. He points to the increasing attendance, and says that his park is being punished for having opened so recently (his park assets are much more recent than the roller coasters at Funland). He currently has an employment offer from another company at the same base pay rate, which he says he will accept if his performance is not appropriately acknowledged. Fatima needs to look at the relative performance across parks to determine how to proceed with David.

Central Treetops includes a high ropes course and has a series of ziplines that criss-cross over the Chippewa River. For many years, it was a popular venue for corporate team-building activities, so it is equipped with a main indoor facility with cafeteria and overnight guest rooms. This park has lost popularity in recent years, and has been ‘in the red’ for the past two years. If the park is not profitable this year, you will need to decide whether to close it - permanently. Included in the ‘Fixed COGS’ for Treetops is a $86,000 mortgage payment on the land and 9,351,510closed. Incidentally, you recently had a conversation with the regional head of the YMCA, who would like to open a summer camp in the central Michigan region. If you decided to close Treetops, you are fairly certain that you could lease that land to the YMCA for $250,000 annually.

A partial report of this year’s financial results for Central Adventures shows the following:

The ‘Selling and administrative costs’ are all incurred directly by each park, and are determined at the beginning of each year (that is, they do not change with the number of tickets sold). In addition to the information above, there are $2,542,920 in corporate costs, which are currently allocated evenly between the three parks. These costs are primarily due to employee benefits costs, which are billed at the corporate level. If the Treetops park is closed, the allocated corporate costs would decrease by $12,000. Central Adventures has a cost of capital of 12 percent (and Fatima uses the cost of capital as their required rate of return) and are subject to 18% income taxes.

Fatima needs to evaluate this year’s performance results before she can make any decisions. Is David’s complaint about the performance evaluation metrics valid? Is that also affecting management decisions in the form of Janet’s rejection of the proposed new rollercoaster? And is the company better off without Treetops? She sets off to the company accountant’s office to help get some answers.

Required:

Write your response in the form of a 1-2 page memo to Fatima Hopkins, from the perspective of the company accountant. Be sure to include all your financial analyses, clearly showing your calculations, to support your conclusions. Be sure to include the following points in your memo, and provide the appropriate financial analysis(es) to support your conclusions.

a.     Create a segmented income statement for Central Adventures.

b.     Calculate the current annual ROI, residual income and EVA for the three parks.

c.     Evaluate Janet Lieberman’s (the Funland park manager) decision. Explain why it was/was not in Central Adventure’s overall best interest for Funland to reject the new rollercoaster.

You are designing a slide for a water park. In a sitting position, park guests slide a vertical distance h down the water-slide, which has negligible friction. When they reach the bottom of the slide, they grab a handle at the bottom end of a 6.00-m-long uniform pole. The pole hangs vertically, initially at rest. The upper end of the pole is pivoted about a stationary, frictionless axle. The pole with a person hanging on the end swings up through an angle of 72.0∘, and then the person lets go of the pole and drops into a pool of water. Treat the person as a point mass. The pole’s moment of inertia is given by I=1/3ML^2 where L = 6.00 m is the length of the pole and M = 31.0 kg is its mass. For a person of mass 70.0 kg, what must be the height h in order for the pole to have a maximum angle of swing of 72.0∘ after the collision?

A line of high-end tires produced by a large company has a wear-out life that can be modeled using a normal distribution with a mean of 25,000 miles and a standard of 2,000 miles. Determine each of the following a- -The percentage of tires that can be expected to wear-out within +or- (plus or minus) 2,000 miles of the average (for example between 23,000 miles and 27,000) b- -The percentage of tires that can be expected to fail between 26,000 miles and 29,000 miles Note: the term percentage refers to a probability

Starting in Albany, you travel a distance 319 miles in a direction 22.3 degrees north of west. Then, from this new position, you travel another distance 360 miles in a direction 11.0 degrees north of east. In your final position, what is your displacement from Albany?

A point charge of -1.0