Full problem is give, but ONLY NEED 9-15 ANSWERED

Prepare all entries that a state or local government should make to record the following transactions and events:

Full problem is give, but ONLY NEED 9-15 ANSWERED

1. A $2,500,000 term bond issue to finance construction of a new brige was issued at a $35,000 premium. $10,000 of bond issue costs were paid from the proceeds.
2. The bond premium, less the bond issue costs, was transferred to the Debt Service Fund for the term bonds.
3. A $400,000 contribution was paid from the General Fund to the Debt Service Fund: $150,000 for interest payments and $250,000 to provide for future principal payments.
4. Bridge construction expendtirues were vouchered, $2,480,000, for improvements.
5. The remaining unused bond proceeds of the Bridge Capital Projects Fund were transferred to the Debt Service Fund for use as needed.
6. Maturing long-term notes payable ($50,000) and interest ($30,000) were paid from a Debt Service Fund.
7. The Police Department entered into a capital lease of equipment with a capitalizable cost of $1,250,000. A $125,000 down payment was made at the inception of the lease.
8. Lease payments of $250,000, including $100,000 interest, were paid.
9. The government pays retiree health care benefits on a pay-as-you-go basis. Payments for the year totaled $400,000. The actuarially required contribution computed in accordance with the parameters required by GAAP was $3,200,000.
10. Inspection services were performed (internal services) by a department financed through the General Fund for a capital project and billed to the project, $3,000.
11. Maintenance services of $1,800 (recorded earlier as CPF expenditures) were rendered by construction workers paid from a Capital Projects Fund for a department financed through the General Fund. (Record the recognition of this correction prior to payment.)
12. a 6-month loan of $400,000 to be repaid during the current year was made from the General Fund to the Debt Service Fund.
13. A 2-year loan of $2,000,000 was made from the General Fund to a Capital Projects Fund.
14. A government sold police vehicles for $65,000. The vehicles originally cost around $480,000 when purchased and are 80% depreciated. The sale proceeds are unrestricted.
15. Cash payments for claims totaled $2,000,000. The fund liability for claims and judgements increased $100,000, to $225,000. The noncurrent portion of the payable decreased by $335,000.

Full problem is give, but ONLY NEED 9-15 ANSWERED

Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows:

The company records sales net of employee discounts. Discounts for 2018 totaled $3,000.

Required:
1. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application.
2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.

(For all requirements, round Cost-to-retail percentage to two decimal places and final answers to whole dollars.)

On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows: 2016 2017 Cost Retail Cost Retail Beginning inventory $ 51,800 $ 74,000 Net purchases 101,150 125,000 $ 107,532 $ 131,700 Freight-in 3,700 4,200 Net markups 18,500 11,400 Net markdowns 3,700 3,900 Net sales to customers 125,250 118,800 Sales to employees (net of 20% discount) 3,000 6,720 Price Index: January 1, 2016 1.00 December 31, 2016 1.06 December 31, 2017 1.10 Required: Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Round your cost-to-retail percentage calculation to 2 decimal places.
estimated ending inventory at retail 2016 2017
estimated ending inventory at cost
estimated cost of goods sold

2. For each of the independent variables classify each as ratio, ordinal, interval or nominal. Please EXPLAIN EACH ONE.

1.     Total annual expenditures

2.     Size of the board, measured as the number of reported board members

3.     Racial diversity of the board, measured as nonwhite board members as a percentage of total members

4.     Gender diversity of the board, measured as female board members as a percentage of total members

5.     Percentage of expenditures spent on administration and fundraising

6.     Administrative staff as a percentage of total staff

7.     Number of reported volunteers

8.     Total fee-generating income (not including member dues) as a percentage of total revenues

9.     Nonwhite staff as a percentage of total staff

10.  Nonwhite organization members as a percentage of all organization members (includes board, all types of staff, and volunteers)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 20 properties with an average of 150 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 75 percent, based on a 365-day year. The average room rate was $220 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows:

In year 1, the average fixed labor cost was $407,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open four new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 75 percent. Management has made the following additional assumptions for year 2:

The average room rate will increase by 8 percent.

Food and beverage revenues per night are expected to decline by 15 percent with no change in the cost.

The labor cost (both the fixed per property and variable portion) is not expected to change.

The miscellaneous cost for the room is expected to increase by 20 percent, with no change in the miscellaneous revenues per room.

Utilities and depreciation costs (per property) are forecast to remain unchanged.

Management costs will increase by 6 percent, and marketing costs will increase by 8 percent.

Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 22 properties with an average of 150 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 80 percent, based on a 365-day year. The average room rate was $215 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows:

In year 1, the average fixed labor cost was $418,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open two new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 80 percent. Management has made the following additional assumptions for year 2:

The average room rate will increase by 5 percent.

Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost.

The labor cost (both the fixed per property and variable portion) is not expected to change.

The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room.

Utilities and depreciation costs (per property) are forecast to remain unchanged.

Management costs will increase by 8 percent, and marketing costs will increase by 10 percent.

Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 12 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 75 percent, based on a 365-day year. The average room rate was $218 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows.

In year 1, the average fixed labor cost was $419,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open three new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 75 percent. Management has made the following additional assumptions for year 2.

• The average room rate will increase by 8 percent.
• Food and beverage revenues per night are expected to decline by 15 percent with no change in the cost.
• The labor cost (both the fixed per property and variable portion) is not expected to change.
• The miscellaneous cost for the room is expected to increase by 20 percent, with no change in the miscellaneous revenues per room.
• Utilities and depreciation costs (per property) are forecast to remain unchanged.
• Management costs will increase by 6 percent, and marketing costs will increase by 8 percent.
• Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.)

PROJECT SUMMARY

A multiprime contract for the construction of a new high school for the New State Building Commission

KEY PLAYERS

Concrete Services Corp. (CSP)

Concrete Contractors

CSP did not have much experience working on public projects, but it did have vast experience as a concrete subcontractor.

Steel Contractor Inc. (SCI)

Steel contractor responsible for supplying the steel columns and erecting the steel frame of the building

Corporal Construction and Management Services, Inc. (CCMS)

Management service responsible for creating and managing the schedule for the project, including:

• Reviewing and coordinating work schedules to eliminate any potential conflicts
• Visiting the job site regularly
• Communicating with the different trades throughout the duration of the project
• Conducting job site meetings to resolve any conflicts that do arise

CCMS is the project’s construction manager under the standard CM Agreement and General Conditions issued by the New State Building Commission. They are a relatively new company and did not have much experience in a construction management role.

Paul Manager

Assigned by CCMS as the lead project manager on the construction project

CCMS needed to quickly fill the lead construction management role on the project or face termination, so they hired Paul Manager. Paul was recommended to CCMS by the owner of SCI.

THE CHALLENGE

Throughout the project, CSP complained to Paul that SCI was hindering its work progress because SCI was experiencing delays in erecting the steel and often did not get the steel columns delivered in time. On a regular basis, the CSP crew would show up for work and would be forced to wait around because SCI had not completed its erection of the steel due to delays in the delivery of SCI’s materials.

When CSP brought the situation to Paul Manager’s attention, Paul told CSP not to worry about it and that he was confident that SCI would come through and complete its scope of work in a timely manner. Paul Manager never conducted a job site meeting to address the situation and he never documented any of CSP’s concerns. On one occasion, CSP’s concrete pump was crushed by one of SCI’s cranes because Paul had arranged to have both crews on the job at the same time working in the same area.

The construction project’s completion date was delayed several months, in part due to an unusually rainy season, but also due in part to schedule delays experienced by several of the contractors on the project.

CSP filed a lawsuit in federal district court alleging that CCMS’s mismanagement of its oversight responsibilities caused CSP to experience a number of delays and to work inefficiently, resulting in extra costs. As evidence of CCMS’s mismanagement of the entire project, CSP alleged that:

• CCMS abandoned the critical path schedule, forcing contractors to do work out of sequence
• Access to the job site often prevented its crew from working at all
• The process for submitting and approving extra work orders took too long, and they often remained unresolved

Question

1. What management technique would you recommend to Paul to mitigate the risk of future disputes?

2. What documentation could either side provide to support their claim?

Bethesda Mining is a mid-sized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip minds. Most of the coal mined is sold under contract, with excess production sold on the spot market.The coal mining industry, especially high-sulfur coal operations such as Bethesda, has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal and new pollution reduction technologies has led to an improved market demand for high-sulfur coal. Bethesda has been approached by Mid-Ohio Electric Company with a request to supply coal for its electric generators for the next 4 years. Bethesda Mining does not have enough excess capacity at its existing mines to guarantee the contract. The company is considering opening a strip mine in Ohio on 5,000 acres of land purchased 10 years ago for $4 million. Based on a recent appraisal, the company feels it could receive $6.5 million on an after-tax basis if it sold the land today.Strip Mining is a process where the layers of topsoil above a coal vein are removed and the exposed coal is removed. Some time ago, the company would remove the coal and leave the land in an unusable condition. Changes in mining regulations now force a company to reclaim the land; that is, when the mining is completed, the land must be restored to near its original condition. The land can then be used for other purposes. Because it is currently operating at full capacity, Bethesda will need to purchase additional necessary equipment, which will cost $95 million. The equipment will be depreciated on a 7-year MACRS schedule. The contract runs for only 4 years. At that time the coal from the site will be entirely mined. The company feels that the equipment can be sold for 60% of its initial purchase price in four years. The contract calls for the delivery of 500,000 tons of coal per year at a price of $86 per ton. Bethesda Mining feels that coal production will be 620,000 tons, 680,000 tons, 730,000 tons, and 590,000 tons, respectively, over the next four years. The excess production will be sold in the spot market at an average of $77 per ton. Variable costs amount to $31 per ton, and fixed costs are $4,100,000 per year. The mine will require a net working capital investment of 5% of sales. The NWC will be built up in the year prior to the sales. Bethesda will be responsible for reclaiming the land at termination of the mining. This will occur in Year 5. The company uses an outside company for reclamation of all the company’s strip minds. It is estimated the cost of reclamation will be $2.7 million. In order to get the necessary permits for the strip mine, the company agreed to donate the land after reclamation to the state for use as a public park and recreation area. This will occur in Year 6 and result in a charitable expense deduction of $6 million. Bethesda faces a 25% tax rate and has a 12% required return on new strip mine projects. Assume that a loss in any year will result in a tax credit.You have been approached by the president of the company with a request to analyze the project. Calculate the NPV, IRR for the new strip mine. Should Bethesda Mining take the contract and open the mine?

Bethesda Mining is a mid-sized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip minds. Most of the coal mined is sold under contract, with excess production sold on the spot market.The coal mining industry, especially high-sulfur coal operations such as Bethesda, has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal and new pollution reduction technologies has led to an improved market demand for high-sulfur coal. Bethesda has been approached by Mid-Ohio Electric Company with a request to supply coal for its electric generators for the next 4 years. Bethesda Mining does not have enough excess capacity at its existing mines to guarantee the contract. The company is considering opening a strip mine in Ohio on 5,000 acres of land purchased 10 years ago for $4 million. Based on a recent appraisal, the company feels it could receive $6.5 million on an after-tax basis if it sold the land today.Strip Mining is a process where the layers of topsoil above a coal vein are removed and the exposed coal is removed. Some time ago, the company would remove the coal and leave the land in an unusable condition. Changes in mining regulations now force a company to reclaim the land; that is, when the mining is completed, the land must be restored to near its original condition. The land can then be used for other purposes. Because it is currently operating at full capacity, Bethesda will need to purchase additional necessary equipment, which will cost $95 million. The equipment will be depreciated on a 7-year MACRS schedule. The contract runs for only 4 years. At that time the coal from the site will be entirely mined. The company feels that the equipment can be sold for 60% of its initial purchase price in four years. The contract calls for the delivery of 500,000 tons of coal per year at a price of $86 per ton. Bethesda Mining feels that coal production will be 620,000 tons, 680,000 tons, 730,000 tons, and 590,000 tons, respectively, over the next four years. The excess production will be sold in the spot market at an average of $77 per ton. Variable costs amount to $31 per ton, and fixed costs are $4,100,000 per year. The mine will require a net working capital investment of 5% of sales. The NWC will be built up in the year prior to the sales. Bethesda will be responsible for reclaiming the land at termination of the mining. This will occur in Year 5. The company uses an outside company for reclamation of all the company’s strip minds. It is estimated the cost of reclamation will be $2.7 million. In order to get the necessary permits for the strip mine, the company agreed to donate the land after reclamation to the state for use as a public park and recreation area. This will occur in Year 6 and result in a charitable expense deduction of $6 million. Bethesda faces a 25% tax rate and has a 12% required return on new strip mine projects. Assume that a loss in any year will result in a tax credit.You have been approached by the president of the company with a request to analyze the project. Calculate the NPV, IRR for the new strip mine. Should Bethesda Mining take the contract and open the mine?