Your company, Acme Computers, is considering outsourcing its customer support activities. Your team has been assigned the job of determining which of 3 companies would best meet the company’s needs. Your company has determined that the maximum yearly contract that they are willing to pay is $1,000,000. Your team has also determined that the factors important to Acme Computer and the weights that the factors should be assigned are “low cost” (weight factor = 4), “familiarity of the company with Acme’s product lines” (weight factor = 8), “number of support lines the company will staff” (weight factor = 6), “fluency of the company’s staff with English” (weight factor = 8), and “demonstrated ability to deal quickly and satisfactorily with customer issues” (weight factor = 3).

You have bids from 3 companies: Anderson Support, which offered a bid of $800,000; Beta Technology, which offered a bid of $950,000 and Calloway Services, which offered a bid of $1,100,000. Your team scores them according to the following table:

a.Based on the information given, are you satisfied with the bids that you have received? Why or why not?

b. Use the Kepner-Tregoe technique to determine which company’s bid should be accepted if any. Show your work.

c. Which company should you choose for outsourcing your customer support? Why? Why may you be concerned about going with that company?

The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) will call for major changes in the way companies in the airline industry recognize revenue. Airlines may have to change how they account for loyalty status benefits, mileage credits, change fees, and breakage for tickets that expire unused. The American Institute of Certified Public Accountants (AICPA) has formed an airlines task force to address implementation issues of the new standard for the airline industry. Assume that you have been called upon to present an analysis of the impact of the new standard on Southwest Airlines.

Refer to Southwest’s (ticker symbol: LUV) current/most recent financial statements (10-K) and the accompanying notes to answer the following questions. The current/most recent financial statement can be found on https://www.sec.gov/edgar/searchedgar/companysearch.html. Search for the company in the ‘Fast Search’ box by using the ticker symbol provided above. In the list of results, find the latest filing labeled 10-K and select the ‘Documents’ link. On the next page, select the document of type ’10-K’ to open it.

A. For each of the following revenue categories, describe the current accounting, the likely changes (if any) that the new revenue recognition standard will require, and the potential impact of those changes on patterns of revenue recognition.

1) Flight Transportation (for tickets used and for ticket breakage)

2) Loyalty Program

3) Ancillary Services and Other Revenue

B. Identify any areas that will require more discretion and judgment and specify why.

The adjusted trial balance of Jacks Financial Planners appears below and using the information from the adjusted trial balance, you are to prepare for the year ending December 31:

         1.   an income statement;

         2.   a statement of owner’s equity; and

         3.   a balance sheet.

JACKS FINANCIAL PLANNERS

Adjusted Trial Balance

December 31, 2010

_____________________________________________________________________________

                                                                                                                          Debit         Credit

Cash ........................................................................................................     $ 15,200

Accounts Receivable ..............................................................................          2,200

Office Supplies .......................................................................................          1,800

Office Equipment ...................................................................................        15,000

Accumulated Depreciation—Office Equipment ....................................                           $ 4,000

Accounts Payable ...................................................................................                               4,000

Unearned Service Revenue ....................................................................                               5,000

S. Jacks, Capital.......................................................................................                             24,400

S. Jacks, Drawings ..................................................................................          2,500

Service Revenue .....................................................................................                               6,500

Office Supplies Expense ........................................................................             600

Depreciation Expense .............................................................................          2,500

Telephone Expense..................................................................................             400

Wages Expense........................................................................................          1,800

Rent Expense ..........................................................................................          1,900                    

                                                                                                                       $43,900        $43,900

17.       (Chapter 3)

Chris’s Florist Shop records all prepaid costs as assets and all revenue collected in advance as liabilities, and makes adjustments only at its fiscal year end, which is June 30^th. All of Chris’s purchases are for cash unless stated otherwise. The following information relates to Chris’s June 30, 2011 year end, its first year of operations.

1.         On July 2^nd, 2010, Chris purchased equipment for $12,000. The equipment is expected to have a useful life of 8 years.

2.         On August 1, 2010 a one-year insurance policy was purchased for $1,740.

3.         On February 1, 2011 a corporate customer paid $2,080 as full payment for a one year contract for fresh flowers to be delivered to its offices every Monday morning. At June 30, 21 of the required 52 deliveries had been completed.

4.         On July 2, 2010 Chris purchased enough supplies to last the entire first year of operations for $4,400. At June 30, 2011, Chris counted the supplies on hand and calculated the cost, which amounted to $1,035.

5.         On May 31, Chris borrows $20,000 from the bank to increase the amount of inventory and expand the business. The interest rate on the loan is 6% and requires monthly payments of interest on the first of each month. The principal is due in one year’s time. The first interest payment is due July 1.

6          Chris pays her store assistant on alternate Fridays. The last pay day in June was June 20^th and the first pay day after year end July is July 4^th. The assistant worked 30 hours during this period, of which 20 were in July, and the rest in June. The assistant earns $9.50 an hour.

7.         June 28^th is a busy day and Chris has to make deliveries to numerous customers. On July 5^th she reviews her June billings, and realizes that she made one large sale for $325 on June 30^th for flowers that were delivered, but for which no invoice was issued. The sale was to a regular customer who will pay promptly when the invoice is sent.

8.         Chris offers customers a coupon valued at $20 every ten floral arrangements that a customer buys. At June 30^th, she reviews her records and finds that 18 customers have purchased enough flowers to claim coupons. Chris records the cost of these coupons as “Coupon Expense” when the customer becomes entitled to them.

Instructions:

(a)        For each transaction, prepare any adjusting entries required at June 30, 2011.

in "From the Housing Bubble to Housing Bust" in the module, which is true?

Group of answer choices

the housing bubble burst in 2010

financial markets reacted to the housing bubble burst by increasing loans

with low housing prices in 2010, homes were quickly purchased.

housing sales dropped dramatically between 2005 and 2008

Sales revenue                                                               $5,625,000

Variable manufacturing expense                  1,875,000

Variable selling and admin expense                 625,000

Fixed manufacturing expense                      1,000,500

Fixed selling and administrative expense        562,000

Total Expenses                                                             (4,062,500)

Net operating income                                                    $ 1,562,500

Company produced and sold 625,000 units of products.

Requirements:

1. Compute Break-even point in unit and explain what that number means.
2. Compute Break-even point in dollar sales volume and explain what that number means.
3. If company want to have a pretax profit of $2,000,000, how much they should sell in dollar amount? Explain that number

At the end of 2016, its first year of operations, Swelland Company reported a pretax operating loss of $32,000 for both financial reporting and income tax purposes. At that time, Swelland had no positive verifiable evidence that it would earn future taxable income. However, due to successful management, the company reported pretax operating income (and taxable income) of $70,000 in 2017. During both years, the income tax rate was 30%, and no change had been enacted for future years.

Required:

Prepare Swelland’s income tax journal entries on December 31, 2016.

PAGE 1

GENERAL JOURNAL

Prepare Swelland’s income tax journal entry on December 31, 2017. Additional Instruction

PAGE 1

GENERAL JOURNAL

Prepare the lower portion of Swelland’s 2017 income statement. Additional Instructions

A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson process with a mean rate of 5 per hour. Type 2 customers arrive according to a Poisson process at a mean rate of 3 per hour. The system has two servers, both of which serve both types of customer. All service times have exponential distribution with a mean of 10 minutes. Service is provided on a first-come-first-served basis.

a. What is the probability distribution of the time between consecutive arrivals of customers of any type, what is its mean?

b. Assume that when a Type 2 customer arrives, he finds two Type 1 customers being served and no other customers in the system. What is the probability distribution of this Type 2 customer’s waiting time in the queue and its mean?

A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson process with a mean rate of 5 per hour. Type 2 customers arrive according to a Poisson process at a mean rate of 3 per hour. The system has two servers, both of which serve both types of customer. All service times have exponential distribution with a mean of 10 minutes. Service is provided on a first-come-first-served basis.

a. What is the probability distribution of the time between consecutive arrivals of customers of any type, what is its mean?

b. Assume that when a Type 2 customer arrives, he finds two Type 1 customers being served and no other customers in the system. What is the probability distribution of this Type 2 customer’s waiting time in the queue and its mean?

A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson process with a mean rate of 5 per hour. Type 2 customers arrive according to a Poisson process at a mean rate of 3 per hour. The system has two servers, both of which serve both types of customer. All service times have exponential distribution with a mean of 10 minutes. Service is provided on a first-come-first-served basis.

a. What is the probability distribution of the time between consecutive arrivals of customers of any type, what is its mean?

b. Assume that when a Type 2 customer arrives, he finds two Type 1 customers being served and no other customers in the system. What is the probability distribution of this Type 2 customer’s waiting time in the queue and its mean?