1. Interpret the tables trend for revenue, expense & dividend year by year comparing both company?

1. Using the following cost and revenue information for Prestige Worldwide (PWW), determine how the costs, revenue, and cash flow items would be affected by the possible exchange rate scenarios for the pound: (1) £ = $1.20, (2) £= $1.25, and (3) £= $1.30. Would Prestige Worldwide be favorably or unfavorably affected by a weakening pound? Why? Explain. Assume that U.S. sales will be unaffected by the exchange rate. Also, assume that £ earnings will be remitted to the U.S. parent at the end of the period. Lastly, ignore possible tax effects.

Please simply complete the table below (populate the table with the USD cash flows for each account under each scenario). You may instead choose to insert a copy of an Excel generated table below – however, if you decide to use Excel, I require you to turn in an electronic copy of your spreadsheet (in addition to pasting the table into the quiz). Failure to do both (paste table into quiz and turn in spreadsheet) will constitute an incomplete answer. (30 points).

The revenue and cost information for Odessa Outfitters inc. for 2015 follows:

Sales Revenue       560,000

COGS (at standart) 342,000

DM price variance      1,000 F

DM quantity variance 6,000 F

DL rate varinace          4,000U

DL efficiency variance 2,000 F

Overhead controllable variance 3,500U

Overhead volüme variance    8,000f

a)What is gross profit at standard?

b)What is gross profit actual?

c)Write journal entries for all variance accounts assuming all units are produced and sold in the same period.

Why should auditors assume revenue is misstated? What type of misstatement is typical for revenue? Under what circumstances my revenue be misstated in an atypical manner?

1. Economic profit is equal to

a. total revenue minus explicit and implicit costs.

b. total revenue minus explicit costs.

c. marginal revenue minus marginal cost.

d. total revenue minus implicit costs.

e. total revenue minus dividends and interest.

2. If the price elasticity of demand is 4, a 5 percent decrease in price will increase quantity demanded by

a. 25%

b. 10%

c. 8%

d. 20%

3. If the calculated elasticity of demand between two points is 2.26, demand is considered

a. very inelastic.

b. very elastic.

c. unitary elastic.

d. very inelastic in the short run.

e. the responsiveness to price change.

4. As we discussed in class, revenue from gambling is, in some states, generating more revenue than the corporate income tax. There a several reasons/issues that exist in the current corporate tax model being utilized by the states. However, we also know that state and local governments are increasing relying on gambling to generate revenue to support their financial plans. Please explain some of the reasons for the reduction in corporate tax revenues, and the policy makers should be aware of as they consider this revenue source?

How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged?

1. Price falls and demand is inelastic.

2. Price rises and demand is elastic.

3. Price rises and supply is elastic.

4. Price rises and supply is inelastic.

5. Price rises and demand is inelastic.

6. Price falls and demand is elastic.

7. Price falls and demand is of unit elasticity

1. The Robinson Diner, managed by Ina Fay, needs your assistance in preparing its 20X8 operating budget. Since the diner is a sole proprietorship, it will not pay income taxes. Information is in the Excel.
   1. Prepare the operating budget for 20X8. (9 points)

We are planning to have 2000 customers each generating 100 USD revenue for a total revenue of 200000 USD (per day).

Q- What measure do you propose to bring it close to the planned number?