Patricia Johnson is the sole owner of Crane Vista Park, a public camping ground near the Crater Lake National Recreation Area. Patricia has compiled the following financial information as of December 31, 2020. Revenues during 2020—camping fees $186,228 Fair value of equipment $186,228 Revenues during 2020—general store 86,463 Notes payable 79,812 Accounts payable 14,632 Expenses during 2020 199,530 Cash on hand 30,595 Accounts receivable 23,278 Original cost of equipment 140,336 (a) Determine Patricia Johnson’s net income from Crane Vista Park for 2020. Net income $enter Net income in dollars (b) Prepare a balance sheet for Crane Vista Park as of December 31, 2020. (List Assets in order of liquidity.) CRANE VISTA PARK Balance Sheet choose the accounting period Assets enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount select a closing section name for this part of the balance sheet $enter a total amount for this part of the balance sheet Liabilities and Owner’s Equity select an opening name for section one enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount select a closing name for section one enter a total amount for this section of the balance sheet select an opening name for section two enter a balance sheet item enter a dollar amount select a closing name for this part of the balance sheet $enter a total amount for this part of the balance sheet

Table 1

Calculate the following for the car park using the data from Table 1:

a) the maximum real power demand P (kW)

b) maximum reactive power demand Q (kVAr)

c) the total apparent power demand S (kVA)

d) also, calculate the maximum current magnitude |I| if the supply voltage magnitude |V| is 3.3 kV and the supply frequency is 50 Hz.

e) Calculate the overall car park power factor.

f) Calculate the rating of the capacitor bank (μF) needed to improve the car park power factor to unity.

g) Calculate the new maximum current magnitude, after power factor correction. Again assume the supply voltage magnitude is 3.3kV and frequency is 50 Hz.

h) Select the cable ID from Table 2 that you would use to supply the car park BEFORE AND AFTER power factor correction has been applied.

i) Comment on your result.

Table 2

Jameson’s hotel group prepares published accounts on a quarterly basis. The senior management is reviewing the performance of one of the hotels in the group and making plans for 2018/19. They have in front of them the results for 2017/18 (based on actual results for the first two quarters and forecasts to the end of the year).

Quarter Sales Profit/(loss)
1 400,000 (280,000)

2 1,200,000 360,000

3 1,600,000 680,000

4 800,000 40,000

The total estimated number of visitors (guest nights) for 2017/18 is 50,000. The results follow a regular pattern, with no unexpected cost fluctuations beyond the seasonal trading pattern. Management intend to add to their plans for 2018/19 an anticipated increase in unit variable costs of 10% and a profit target for the hotel of $1 million.

Required: (a) Determine the total variable and total fixed costs of the hotel for 2017/18, by using both a PV chart and by calculation. (b) i. If there is no increase in visitors for 2018/19, what will be the required revenue rate per hotel visitor to meet the profit target? ii. If the required revenue rate per visitor is not raised above the 2018/19 level, how many visitors are required to meet the profit target? (c) Outline and briefly discuss the assumptions underlying the accountants’ typical PV or break-even analysis and assess whether they limit its usefulness.

Note: In order to achieve full marks for this question it is essential that you fully explain what you are doing, why you are doing it and the steps involved in providing a final solution. Ensure your answer is not just a set of calculations as 25% of the marks for this question are set aside for your explanation.

Write psuedocode and Java code using JOptionPane

Scenario: ABC Resort and Hotel has approached you to write a program to keep track of the number of rooms needed for an event. Customers can request any one of the following types of rooms to be reserved. Because the hotel has limited rooms available for a given event, it can only reserve up to 39 rooms. However, the hotel does not know how many rooms, in total, will be reserved because the rooms are reserved on demand.

Room Type and Price/per night: Single $79.95, Single Deluxe $99.95, Double $149.95, Double Deluxe $179.95

Create a program for use by the hotel staff to take reservation orders for rooms for an event. All events are single night stay events. So you do not need to worry about the number of nights they are staying. An order occurs when the user enters a room type by name (e.g. Single). Until the user has indicated they are finished entering room types, continue to prompt the user to enter a room type. You must validate the room type, providing an error message and re-prompting the user if an invalid room type is entered. Keep track of the number of rooms that will be reserved for each room type. Once the user has indicated they are finished entering room types, display a well-formatted report containing a list of each room type with its associated price, the number of rooms needed for that room type, the total revenue from all rooms for the event, and the average revenue from a room for the event.

Program must use arrays

Answer all 4 of the questions/topics:

Each response must be at least 200-300 words.

1. Communication

Describe and explain the importance of a good integrated information & communication system. What is the importance of communication between departments and what negative impact can a poor system of communication have for a hotel? Discuss 2 important forms of integrated PMS/Communication systems or examples of data information.

2. Future of Hotels

Imagine the hotel room of the future (10 years from now). What does the room look like? What technologies exist in the room? How does it improve the guest experience? What needs and expectations will the future guest have for Accommodation properties? In light of recent health issues what steps will the Accommodations Industry need to address to gain consumer confidence? What will the long term outcome of the industry be after crisis is cleared?

3. Housekeeping

Discuss the importance of the Housekeeping Department. Why is the Rooms Division the greatest asset of the owners? How will you deal with staffing due to lower occupancy? What steps will housekeeping need to take in order to protect our guests and our staff moving forward after the current health crisis?

4. Guest Service

Describe/Explain the following Service Recovery Model and provide an example from the Accommodation Industry for each section. Remember: As discussed in class we have to assess the Fault & Severity. Following this chart answer the following question: -How will you drive business to your hotel once crisis is over?

How will you attract business to your hotel once crisis is over?

Considering the calculations you have done so far, you need to attend to a number of import and export transactions for goods that companies in the United States expressed interest in.

The first transaction is for the import of good quality wines from Australia, since a retail liquor trading chain customer in the United States, for who you have been doing imports over the past five years has a very large order this time. The producer in Australia informed you that the current cost of the wine that you want to import is AUD$2,500,000. The wine in Australia can be shipped to the United States immediately but you have three months to conduct payment.

The second transaction is for the export of 3d printers manufactured in the U.S.A. The country where it will be exported to is Britain. The payment of £2,500,000 for the export to Britain will be received nine months from now.

You consider different transaction hedges, namely forwards, options, and money market hedges.

You are provided with the following quotes from your bank, which is an international bank with branches in all the countries:

Forward rates:

Bank applies 360 day-count conventions to all currencies (for this assignment apply 360 days in all calculations).

Annual borrowing and investment rates for your company:

Bank applies 360 day-count convention to all currencies. Explanation – e.g. 3 month borrowing rate on $ = 2.687%. This is the annual borrowing rate for 3 months. If you only borrow for 3 months the interest rate is actually 2.687%/4 = 0.67175% (always round to 7 decimals when you do calculations). Furthermore, note that these are the rates at which your company borrows and invests. The rates are not borrowing and investment rates from a bank perspective.

Option prices:

Bank applies 360 day-count convention to all currencies. (Students also have to apply 360 days in all calculations). Option premium calculations should include time value calculations based on US $ annual borrowing interest rates for applicable time periods e.g. 3 month $ option premium is subject to 2.687%/4 interest rate.)

a. Calculate the cost of money market hedges for the import from Australia (Complete Table 3 on the separate answer sheet).

b. Determine the option types that you will consider based on the exchange rate quotes provided by your bank. Remember we will long or short the base currencies (in this case study the currencies that are not $) and the FV of premium cost is based on the borrowing cost of $ for the time period of the option. For example if it is a 3 month option, then the interest rate that should be applied is United States 3 month borrowing rate of 2.687%/4 = 0.67175%). Calculate the total cost of using options as hedging instrument for the imports from Australia (Complete Table 4 on the separate answer sheet).

Table 3: Australia import cost with money market hedge:

Table 4: Australia import cost with option hedge:

Mini Case

With the growth in demand for exotic foods, Possum Products’s CEO Michael Munger is considering expanding the geographic footprint of its line of dried and smoked low-fat opossum, ostrich, and venison jerky snack packs. Historically, jerky products have performed well in the southern United States, but there are indications of a growing demand for these unusual delicacies in Europe. Munger recognizes that the expansion carries some risk. Europeans may not be as accepting of opossum jerky as initial research suggests, so the expansion will proceed in steps. The first step will be to set up sales subsidiaries in France and Sweden (the two countries with the highest indicated demand), and the second is to set up a production plant in France with the ultimate goal of product distribution throughout Europe.

Possum Products’s CFO, Kevin Uram, although enthusiastic about the plan, is nonetheless concerned about how an international expansion and the additional risk that entails will affect the firm’s financial management process. He has asked you, the firm’s most recently hired financial analyst to develop a 1-hour tutorial package that explains the basics of multinational financial management. The tutorial will be presented at the next board of directors meeting. To get you started, Uram has supplied you with the following list of questions:

Solution

a.What is a multinational corporation? Why do firms expand into other countries?

b.What are the six major factors that distinguish multinational financial management from financial management as practiced by a purely domestic firm?

c.Consider the following illustrative exchange rates.

(1)What is a direct quotation? What is the direct quote for euros?

(2)What is an indirect quotation? What is the indirect quotation for kronor (the plural of krona is kronor)?

(3)The euro and British pound usually are quoted as direct quotes. Most other currencies are quoted as indirect quotes. How would you calculate the indirect quote for a euro? How would you calculate the direct quote for a krona?

(4)What is a cross rate? Calculate the two cross rates between euros and kronor.

(5)Assume Possum Products can produce a package of jerky and ship it to France for $1.75. If the firm wants a 50% markup on the product, what should the jerky sell for in France?

(6)Now assume that Possum Products begins producing the same package of jerky in France. The product costs 2 euros to produce and ship to Sweden, where it can be sold for 20 kronor. What is the dollar profit on the sale?

(7)What is exchange rate risk?

d.Briefly describe the current international monetary system. How does the current system differ from the system that was in place prior to August 1971?

e.What is a convertible currency? What problems arise when a multinational company operates in a country whose currency is not convertible?

f.What is the difference between spot rates and forward rates? When is the forward rate at a premium to the spot rate? At a discount?

g.What is interest rate parity? Currently, you can exchange 1 euro for 1.25 dollars in the 180-day forward market, and the risk-free rate on 180-day securities is 6% in the United States and 4% in France. Does interest rate parity hold? If not, which securities offer the highest expected return?

h. What is purchasing power parity? If a package of jerky costs $2 in the United States and purchasing power parity holds, what should be the price of the jerky package in France?

i.What effect does relative inflation have on interest rates and exchange rates?

j. Briefly discuss the international capital markets.

k.To what extent do average capital structures vary across different countries?

l.Briefly describe special problems that occur in multinational capital budgeting, and describe the process for evaluating a foreign project. Now consider the following project: A U.S. company has the opportunity to lease a manufacturing facility in Japan for 2 years. The company must spend ¥1 billion initially to refurbish the plant. The expected net cash flows from the plant for the next 2 years, in millions, are CF1 ¥500 and CF2 ¥800. A similar project in the United States would have a risk-adjusted cost of capital of 10%. In the United States, a 1-year government bond pays 2% interest and a 2-year bond pays 2.8%. In Japan, a 1-year bond pays 0.05% and a 2-year bond pays 0.26%. What is the project’s NPV?

m.Briefly discuss special factors associated with the following areas of multinational working capital management:

(1) Cash management

(2) Credit management

(3) Inventory management

2. Student pricing at the movie theater is a common example of third degree price

discrimination. What is it about students, as compared to everyone else, that makes

movie theaters want or need to charge them a lower price? Why is it important for

movie theaters to make students show their IDs? Additionally, suppose a student could

buy as many tickets as they wanted with their ID. How might that limit the theater’s

ability to charge two drastically different prices for students and non-students?

In a home theater system, the probability that the video components need repair within 1 year is 0.02, the probability that the electronic components need repair within 1 year is 0.005, and the probability that the audio components need repair within 1 year is 0.004. Assuming that the events are independent, find the following probabilities. (Round your answers to four decimal places.)

(a) At least one of these components will need repair within 1 year


(b) Exactly one of these component will need repair within 1 year