You have recently been promoted to General Manager at Creekview Lodge, a 50 room hotel in Gatlinburg, Tennessee. You started working at the lodge in high school in the restaurant and after college, returned to Creekview as one of the assistant managers before being promoted to hotel manager. Recently, a 200-room hotel opened not far from Creekview Lodge, and although Creekview still maintains near 100% capacity there has been quite a bit of turnover. More than ten employees left to work for the larger hotel which boasted higher pay and better health insurance.

You were informed this morning by the front desk team that the latest customer survey results show a drop in the satisfaction rating for guest room cleanliness. The current report indicates that 73% of guests responded “completely satisfied”, 12% responded “satisfied”, 10% responded “neither satisfied nor unsatisfied”, and 5% responded “unsatisfied.” The housekeeping staff lost four employees to the new hotel, so although disappointed, you aren’t surprised by this news. Still, you could not remember a time that the hotel had received such a low satisfaction rating.

As manager of Creekview Lodge, what is your next step in addressing the problem?

A)Take immediate action and require that all rooms be inspected by the hotel manager (you) or an assistant manager before being made available to customers

D)Review the standards of performance and compare to current performance

Amy Richardson had been a well-paid sales manager of a major hotel chain for 15 years. Due to a hotel owner's illness, Amy was offered the opportunity to purchase a hotel near a seaside vacation area she had often visited. After obtaining a lawyer and a financial accountant to assist her, Amy did an analysis of the most recent financial statements of the hotel. Since the hotel had consistently shown a profit during the past few years, Amy thought that the price of the hotel was reasonable, so she decided to purchase the hotel. She resigned her position, obtained a loan, and purchased the hotel.

During the first year as a hotel manager, Amy received an offer from a tour operator who proposed to guarantee a considerable number of room reservations, including during the off-season. However, she turned down the offer because the tour operator asked for a 20% price reduction compared to the regular room rate. A few weeks later, she decided to shut down the restaurant, located in the main building of the hotel, in order to save expenses. With regard to general expenses, she was particularly concerned with the high room cleaning and service costs. On the sales side, although the reservations for the cheaper standard rooms were a bit sluggish, the more expensive large-size superior rooms had a very good occupancy rate of over 90%.

The following year, there was a severe economic downturn and also a very bad weather season that reduced the number of guests and also caused a resulting mold situation in the hotel building that required expensive repair work. Amy ran short of cash, became emotionally distraught, and eventually had to sell the hotel at a significant loss.

Prepare a cash budget for the first four quarters after Amy’s purchase of the hotel with any data you can imagine or find on the internet. To answer the question, invent some basic cost and revenue data. Enter the numbers directly in the table below. The table of the cash budget itself should not exceed 15-20 lines. In addition to that, make sure to explain your underlying assumptions and comment on the results in the space provided below the table.

• calculation of cash receipts, including assumptions and comments;
• calculation of cash disbursements, including assumptions and comments;
• for overall coherence / form, and overall conclusions/comments

Cash Budget for the first four quarters:

Add additional lines as needed.

CODE IN PYTHON:

Your task is to write a simple program that would allow a user to compute the cost of a road trip with a car. User will enter the total distance to be traveled in miles along with the miles per gallon (MPG) information of the car he drives and the per gallon cost of gas. Using these 3 pieces of information you can compute the gas cost of the trip.

User will also enter the number of days it will take to complete the trip. For each night (day-1 nights), user will need a hotel. We will ask for the number of stars for the hotel the user wants to stay. 5 star hotel costs $250 per night. 4 star hotel costs $180 per night. 3 star hotel costs $120 per night, 2 star hotel costs $100 per night and finally 1 star hotel costs $50 per night. Using the hotel costs and the number of nights users will need to stay at a hotel, you can compute the hotel cost of the trip.

Please note that 5 star and 4 star hotels give 10% discount if the user will be staying more than 2 nights -- (these are chain hotels, so even if you are staying at different locations discount apply).

We should also account for the cost of meals. This depends on the type of hotel the user is staying. In general, we take 20% of hotel cost as the meal cost (after 10% hotel discount if applicable).

Example Run #1

Distance: 350

MPG : 15

Gas Price: 3.79

Days Traveling : 3

Hotel Stars (1-5) : 3

Your total cost is $376.43333333333334

Example Run #2

Distance: 400

MPG : 20

Gas Price: 2.99

Days Traveling: 1

Hotel Stars (1-5): 5

Your total cost is $59.800000000000004.

Example Run #3

Distance: 150 MPG : 25 Gas Price: 1.99 Days Traveling : 2 Hotel Stars (1-5): 5 Your total cost is $311.94.

In excel, Produce the amortization schedule for a $800K mortgage at 10 years with a rae of 3.25 percent / year. Provide a column for labels and the excel functions used.

1. You are the CEO of “I am the top 1%” Corporation, which has a capital structure of 60% equity and 40% debt. The estimated net income of your company is $600K. Your capital budget is $800K for the coming year. If you follow the residual dividend models, how much dividend you can pay and what is your pay-out ratio? What happens to dividend when estimated net income is $400K or $800K?
2. Discuss the advantages and disadvantages of Residual dividend policy.
3. What are the steps you consider in setting your dividend policy?
4. Explain the concept of DRIP with an example.

Firm X wants to raise $10 million to grow and attract new investors. Firm X operates in an inflationary environment and has been using the LIFO inventory valuation method to minimize their net earnings and thereby reduce their taxes. The CEO asks you to estimate the change in net earnings that would happen if they switched to FIFO.

After reviewing Firm X’s finances, you estimate that pre-tax income would increase by $1.2 million if the company adopted the FIFO method. However, the switch would result in approximately $400k of additional taxes. The overall effect would result in an increase of $800k in net earnings. The CEO tells you to prepare the tax return on a LIFO basis for inventory, but to prepare statements on a FIFO basis to be sent to potential investors.

1. How will the switch to FIFO affect the Balance Sheet?
2. What are the legal and ethical implications of the CEO’s recommendation?
3. If you switch to FIFO for taxes as well as financial reporting purposes, net income will increase by $800k. Comment on the possibility of paying $400k in income taxes to obtain an additional $800k of net income.

Suzy’s Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behavior patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation. What are her estimated costs at 4,214 snow cones? When calculating the variable cost per unit, round your answer to two decimal places before completing your calculations. Do not use dollar signs, commas or decimals in your answer. Input your answer to the nearest whole number.

Suzy’s Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behavior patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation. What are her estimated costs at 4628 snow cones? When calculating the variable cost per unit, round your answer to two decimal places before completing your calculations. Do not use dollar signs, commas or decimals in your answer. Input your answer to the nearest whole number.

Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed as follows.

Required:

a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts.

b. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1 transaction is provided for you.

Feb. 1 = Cash $500,000 (assets)

Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed as follows. Feb. 1 Grimes and several others invested $600,000 cash in the business in exchange for 30,000 shares of capital stock. Feb. 10 The company purchased office facilities for $360,000, of which $120,000 was applicable to the land and $240,000 to the building. A cash payment of $72,000 was made and a note payable was issued for the balance of the purchase price. Feb. 16 Computer equipment was purchased from PCWorld for $14,400 cash. Feb. 18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $10,800. A $1,200 cash payment was made at the time of purchase, and an agreement was made to pay the remaining balance in two equal installments due March 1 and April 1. Hi-Way Furnishings did not require that Heartland sign a promissory note. Feb. 22 Office supplies were purchased from Office World for $360 cash. Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $359, but Heartland was charged $395. PCWorld promised to refund the difference within seven days. Feb. 27 Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18. Feb. 28 Received $36 from PCWorld in full settlement of the account receivable created on February 23. Required: a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts: Cash Land Accounts Receivable Office Building Office Supplies Notes Payable Office Furnishings Accounts Payable Computer Systems Capital Stock b. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1 transaction is provided for you.