Problem 12-26 Simple Rate of Return; Payback [LO12-1, LO12-6]

Sharkey’s Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Mr. Sharkey gathered the following information about the slide:

1. Water slide equipment could be purchased and installed at a cost of $360,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value.
2. Mr. Sharkey would use straight-line depreciation on the slide equipment.
3. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $97,500 to an amusement park in a nearby city.
4. Mr. Sharkey concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $3.90 per person (the same price the Fun Center has been charging for the old rides).
5. Based on experience at other water slides, Mr. Sharkey estimates that annual incremental operating expenses for the slide would be: salaries, $84,000; insurance, $4,700; utilities, $13,500; and maintenance, $10,300.

Required:

1. Prepare an income statement showing the expected net operating income each year from the water slide.

2-a. Compute the simple rate of return expected from the water slide.

2-b. Based on the above computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 13% on all investments?

3-a. Compute the payback period for the water slide.

3-b. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?

Sharkey’s Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Mr. Sharkey gathered the following information about the slide:

1. Water slide equipment could be purchased and installed at a cost of $330,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value.
2. Mr. Sharkey would use straight-line depreciation on the slide equipment.
3. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $92,000 to an amusement park in a nearby city.
4. Mr. Sharkey concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $3.70 per person (the same price the Fun Center has been charging for the old rides).
5. Based on experience at other water slides, Mr. Sharkey estimates that annual incremental operating expenses for the slide would be: salaries, $82,000; insurance, $4,500; utilities, $13,300; and maintenance, $10,100.

Required:

1. Prepare an income statement showing the expected net operating income each year from the water slide.

2-a. Compute the simple rate of return expected from the water slide.

2-b. Based on the above computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 14% on all investments?

3-a. Compute the payback period for the water slide.

3-b. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?

Problem 12-26 Simple Rate of Return; Payback [LO12-1, LO12-6]

Sharkey’s Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Mr. Sharkey gathered the following information about the slide:

1. Water slide equipment could be purchased and installed at a cost of $540,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value.
2. Mr. Sharkey would use straight-line depreciation on the slide equipment.
3. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $85,000 to an amusement park in a nearby city.
4. Mr. Sharkey concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $5.10 per person (the same price the Fun Center has been charging for the old rides).
5. Based on experience at other water slides, Mr. Sharkey estimates that annual incremental operating expenses for the slide would be: salaries, $96,000; insurance, $5,900; utilities, $14,700; and maintenance, $11,500.

Required:

1. Prepare an income statement showing the expected net operating income each year from the water slide.

2-a. Compute the simple rate of return expected from the water slide.

2-b. Based on the above computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 14% on all investments?

3. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?

Systems analysis project 10: can you answer the 4 questions at the task section, thank you.
Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation.
Background
Susan and Gray finished their work on user interface, input, and output design. They developed a user-centered design that would be flexible and easy to learn. Now Susan turned her attention to the architecture for the new system. Susan wanted to consider their own organization and culture, enterprise resource planning, total cost of ownership, scalability, Web integration, legacy systems, processing methods, security issues, and corporate portal. She also needed to select a network plan, or topology, that would dictate the physical cabling and network connections, or consider a wireless network. When all these tasks were completed, she would submit a system design specification for approval.
Tasks:
1. What would be the advantages of selecting an Internet-based architecture for the Personal Trainer’s system?

2. If Personal Trainer wants to increase its Internet marketing efforts, what advice could you offer? Perform research to find out more about the topic of Web-based marketing before you answer Gray.

3. What software and hardware infrastructure will be necessary to ensure Personal Trainer can process point of sale transactions?

4. Prepare an outline for a system design specification and describe the contents of each section

Exchange vs Nonexchange Transactions

Classify each transaction below as exchange or nonexchange. If it is a nonexchange transaction, classify it in one of the four categories of nonexchange transactions. Explain your answer.

1. Merchant collects state cigarette tax on sale of a pack of cigarettes.

2. State reimburses schools for costs related to special education of handicapped children. The school must verify eligibility of the children.

3. State fines for hunting illegally on protected state wildlife preserve.

4. City property taxes are paid by owner.

5. Hotel tax is collected at checkout.

6. Donor provides $300,000 to a city homeless shelter and specifies $100,000 may be spent each year.

7. County landfill collects fee from citizen dumping trash.

8. Income tax is withheld from an employee's paycheck.

9. A business donates cash for scholarships to a public university and specifies the scholarships must be for study abroad.

10. A corporation makes a grant to a public university to conduct research on genetics coding, and the university agrees to give the corporation all patent rights on results of the genetic coding research.

2. Good uses of credit

Although you should strive to keep your debt to a level appropriate for your financial situation, there are several good uses of credit. Which of the following are good uses of credit? Check all that apply.

__ Obtaining a mortgage to purchase a home.

__ Obtaining a student loan to finance your education.

__ Using credit to pay for unexpected expenses such as emergency medical services or automobile repairs.

__ Using a credit card to protect yourself against seller rip-offs and frauds.

__ Taking advantage of free-credit promotions such as a reduced interest rate or a “same-as-cash” plan.

__ Using one credit card to make payments on another credit card.

__ Using a loan to open a business.

__ Using a credit card to pay for groceries or gasoline when you cannot afford to pay the balance in full each month.

__ Using a credit card for convenience, but only if the balance is paid in full each month.

__ Purchasing an overly expensive or otherwise unaffordable vehicle.

__ Using a credit card for hotel or car rental reservations.

A wholesale distributor operating in different regions of Portugal has information on annual spending of several items in their stores across different regions and channels. The data (Wholesale Customer.csv) consists of 440 large retailers’ annual spending on 6 different varieties of products in 3 different regions (Lisbon, Oporto, Other) and across different sales channel (Hotel/Restaurant/Café HoReCa, Retail).

1.1. Use methods of descriptive statistics to summarize data.
Which Region and which Channel seems to spend more?
Which Region and which Channel seems to spend less?

1.2. There are 6 different varieties of items are considered.
Do all varieties show similar behaviour across Region and Channel?

1.3. On the basis of the descriptive measure of variability, which item shows the most inconsistent behaviour?
Which items shows the least inconsistent behaviour?

1.4. Are there any outliers in the data?

1.5. On the basis of this report, what are the recommendations?

How do I attach file, unable to paste data..also send me python commands for this answer

34. Daniel is single and has the following income and expenses in 2017:

Salary income $60,000

Net rent income 6,000

Dividend income 3,500

Payment of alimony 12,000

Mortgage interest on residence 4,900

Property tax on residence 1,200

Contribution to traditional IRA 5,000

Contribution to United Church 2,100

Loss on the sale of real estates (held for investment) 2,000

Medical expenses 3,250

State income tax 300

Federal income tax 7,000

a. Calculate Daniel’s AGI.

b. Should Daniel itemize his deductions from AGI or take the standard deduction? Explain.

41. Nancy, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $35,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expense for this are $53,000. The restaurant begins operations on September 1. Determine the amount that Nancy can deduct in the current year for investigating these two businesses.

1. Identify an organization that has achieved ISO 9000 certification and write a short paper (roughly one page) that summarizes the benefits and results that the organization has achieved using ISO 9000.
2. Find a customer satisfaction survey from a restaurant or a hotel and submit it along with your group report as an attachment. How do the questions relate to the five dimensions of service quality introduced in Chapter 2? Discuss how the survey results could be used to control quality. What types of quality control charts might be used?
3. Research and briefly describe one or two lean initiatives in service organizations and then make an argument for or against adopting lean principles in service businesses. What is different about applying lean in a factory versus a service situation? Describe your findings in a one-page (roughly) paper.
4. Pick one of the projects , i.e., in one of your group member’s home, fraternity/sorority or business organization. List at least 7 activities that comprise the project and draw the precedence network. What problems did you encounter in doing this?