A. Differentiate between revenue expenditure and capital expenditure
B. Classify the following transactions as revenue (Income) or capital in nature?
1. Sale of manufactured paints.
2. Contract to provide services to repair dilapidated building.
3. Purchase of raw material to manufacture garments.
4. Construction of a warehouse to house finished goods for distribution.
5. Proceeds of an insurance policy covering loss of profits for damage done to the business premises because of a fire.
6. Repairs of 90% of business complex that was damaged by fire
7. Removal of wooden partition and replacing it with concrete wall
8. Used car dealer replace his fleet of locally manufactured cars with imported SUVs’
In: Accounting
6. Explain the relationship between the elasticity and total revenue. (Remember Total Revenue = Price x Quantity Sold)
11. After economic class one day, your friend suggests that taxing tobacco would be a good way to raise revenue. In what sense is taxing tobacco a "good" way to raise revenue? In what sense is it not a "good" way to raise revenue?
In: Economics
Distinguish between Revenues and Estimated Revenue. Illustrate the budget entry for Estimated Revenue. Use this information to book the entry. The city approved the revenue budget for the following. Total Revenue $750,000 (Taxes $500,000 Inter government Revenue $125,000, and Licenses and permits of $125,000).
In: Accounting
Financial Statement Disclosure:
International Clothiers Ltd. has offices in Canada, Bermuda, Europe and the United States. Each of the following events have occurred after the company’s 31 December 2017 year-end, but before their financial statements had been finalized:
a. On 27 January, International Clothiers Ltd entered into a long-term lease for a private airplane for the company president and CEO. The lease requires payments of US$75,000 per month for 60 months.
b. The board of directors met on 15 February 2018 and decided to discontinue its shoe division due to continuing losses and a change in business strategy.
c. One of the company’s major retail customers declared bankruptcy on 22 March. The retail customer accounted for 20% of International Clothier’s year-end receivables and 35% of International Clothier’s revenue in 20x7.
In: Accounting
discuss three mistakes you have experienced or witnessed in the workplace. What would be your recommendations to correct these mistakes? Explain how your recommendations would contribute to effective performance management.
In: Accounting
ABC Ltd. has revenue of N$500 million and sells all of its goods on
credit to a variety of different wholesale customers. At the moment
the company offers a standard credit period of 30 days. However,
70% of its customers (by revenue) take an average of 70 days to
pay, while the other 30% of customers (by revenue) pay within 30
days. The company is considering offering a 2% discount for payment
within 30 days and estimates that 80% of customers (by revenue)
will take up this offer (including those that already pay within 30
days).
The Managing Director has asked the credit controller if the cost
of this new policy would be worth offering. The company has a £80
million overdraft facility that it regularly uses to the full limit
due to the lateness of payment and the cost of this overdraft
facility is 15% per annum.
The credit controller also estimates that bad debt level of 2% of
revenue would be halved to 1% of revenue as a result of this new
policy.
Required
1. Calculate the approximate equivalent annual percentage cost of a discount of 2%, which reduces the time taken by credit customers to pay from 70 days to 30 days.
2. Calculate the value of trade receivables under the existing scheme and the proposed scheme at the year-end. (8 marks
3. Evaluate the benefits and costs of the scheme and explain with reasons whether the company should go ahead and offer the discount. You should also consider other factors in this decision. (Hint: You need to work out the cost of the discount compared to the interest on the overdraft saved and bad debt reduction.)
In: Finance
1. What is the relationship between price elasticity of demand and total revenue?
2.You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults. You tell your supervisor that your proposal is likely to increase revenue. What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
3. If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry, what impact would this have on the supply and demand in the market for airline service, assuming no other changes take place in this market?
Use your own words to explain， thank you.
In: Economics
Can the cost of flying a commercial airliner be predicted using
regression analysis? If so, what variables are related to this
cost? A few of many variables that can potentially contribute are
type of plane, distance, number of passengers, amount of
luggage/freight, weather condition, direction of destination, or
even pilot skill. Suppose a study is conducted using only Boeing
737s traveling 800 km on comparable routes during the same season
of the year. Can the number of passengers predict the cost of
flying such routes? It seems logical that more passengers result in
more mass and more baggage, which could, in turn, result in
increased fuel consumption and other costs. Suppose the data
displayed below are the cost and associated number of passengers
for thirty-six 800-km commercial airline flights using Boeing 737s
during the same season of the year. We will use these data to
develop a regression model to predict cost by number of
passengers.
The data contains the data on the cost and number of passengers of
36 observations.
| Cost | Passengers |
| 4.24 | 88 |
| 3.39 | 95 |
| 2.6 | 88 |
| 2.27 | 66 |
| 3.28 | 87 |
| 3.67 | 88 |
| 3.09 | 81 |
| 1.71 | 60 |
| 3.48 | 86 |
| 4.22 | 93 |
| 3.24 | 80 |
| 4.9 | 96 |
| 0.77 | 62 |
| 1.49 | 61 |
| 2.36 | 69 |
| 3.21 | 76 |
| 2.59 | 74 |
| 3.06 | 86 |
| 2.71 | 80 |
| 4.8 | 98 |
| 3.42 | 91 |
| 2.08 | 59 |
| 1.62 | 71 |
| 3.33 | 84 |
| 3.63 | 89 |
| 3.67 | 92 |
| 2.43 | 75 |
| 4.88 | 92 |
| 3.07 | 85 |
| 2.35 | 74 |
| 1.72 | 73 |
| 4.12 | 90 |
| 3.67 | 73 |
| 2.94 | 73 |
| 2.3 | 77 |
| 1.67 | 69 |
(f) Using an αα of 5%, this data indicates that ? Cost
of flying a commercial flight using Boeing 737s the number of
passengers ? can cannot be expressed as
a linear function of ? Cost of flying a commercial
flight using Boeing 737s the number of passengers .
(g) Find a 95% confidence interval for the slope term of the model,
β1β1.
Lower Bound =
(use three decimals in your answer)
Upper Bound =
(use three decimals in your answer)
(i) With 95% confidence, find the average cost of flying a
commercial flight using Boeing 737s when the number of passengers
is 70.
Lower Bound =
(use three decimals in your answer)
Upper Bound =
(use three decimals in your answer)
In: Statistics and Probability
A 335-room hotel property recorded in 2004 a 66.6% occupancy and an ADR of $117.98. What is the property’s franchise fee (1) on a per available room basis and (2) as a percentage of rooms revenue if the agreement required the hotel to pay a reservation fee of $7.65 per available room per month; a royalty fee of 5% of rooms revenue; an advertising fee of 2.3% of rooms revenue; and a frequent traveler program fee of $5.00 per occupied room. The hotel had frequent stay guests totaling 6% of the occupied rooms. The initial fee is a minimum of $45,000 plus $300 per room for each room over 150.
1. Please use the information from Question 1 to calculate the Total franchise fee.
Total franchise fee (round to a whole number) $ ___
2. Please use the information from Question 1 to calculate the Franchise fee on PAR basis.
Franchise fee on PAR basis (round to two decimal places) $___ PAR/yea
3.Please use the information from Question 1 to calculate the Franchise fee as a % of revenue.
Franchise fee as a % of revenue (round to two decimal places) ___%
In: Accounting
The relationship between "strength" and "fineness" of cotton fibers was the subject of a study that produced the following data. (Give your answers correct to two decimal places.) x, Strength 76 69 71 76 83 72 78 74 80 82 y, Fineness 4.3 4.5 4.7 4.0 3.9 4.0 5.0 4.7 4.1 4.5 (a) Draw a scatter diagram. (Do this on paper. Your instructor may ask you to turn in this work.) (b) Find the 95% confidence interval for the mean measurement of fineness for fibers with a strength of 74. Lower Limit Upper Limit (c) Find the 98% prediction interval for an individual measurement of fineness for fibers with a strength of 74. Lower Limit Upper Limit
In: Statistics and Probability