Classique Household Furnishings & Appliances is a family-owned furniture store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2018. Your data collection has yielded the following:

i)          Extracts from the sales and purchases budgets are as follows:

ii)            An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90:

50% in the month of sale

35% in the first month following the sale

15% in the second month following the sale

iii)           Accounts payable are settled as follows, in accordance with the credit terms – 4/30, n60:

70% in the month in which the inventory is purchased

30% in the following month

iv)           Monthly rental is received from a tenant for storage space rented to him by Classique Household Furnishings & Appliances. The rental is $840,000 per annum and is received quarterly in advance. Rental relating to the quarter under review becomes due on July 1.

v)            Computer equipment, which is estimated to cost $350,000, will be acquired for cash in August. The manager has made arrangements with the seller to make a cash deposit of 50% of the amount upon signing of the agreement in August, with the balance to be settled in four equal monthly instalments, starting in September 2018.

vi)           An investment instrument purchased by the company with a face value of $480,000 will mature on July 20, 2018 and will be liquidated on that date. At the same time, quarterly interest computed at a rate of 8⅓ % per annum will also be collected.

vii)         Fixed operating expenses, which accrue evenly throughout the year, are estimated to be $1,920,000 per annum [including depreciation on non-current assets of $42,000 per month] and are settled monthly.

viii)        Wages and salaries are expected to be $2,304,000 per annum and will be paid monthly.

ix)           Other operating expenses are expected to be $144,000 per quarter and are settled monthly.

x)            In the month of August, furniture & fixtures, which cost $455,000, will be sold to an employee at a loss of $20,000. Accumulated depreciation on the furniture & fixtures at that time is expected to be $305,000. The employee will be allowed to pay a deposit equal to 60% of the selling price in August with the balance settled in two equal amounts in September & October.

Continued.......................................

Question 2 Continued.......................................

xi)           As part of its investing activities, the management of Classique Household Furnishings & Appliances is in the process of completing a major addition to the business property which is estimated to cost $1,200,000, and which is being funded by external borrowing. $460,000 of the principal, along with interest of $18,000 is due to be paid on July 15, 2018.

xii)         The cash balance on September 30, 2018 is expected to be an overdraft of $264,000.

Required:

(a)          The business needs to have a sense of its future cashflows and therefore requires the preparation of the following:

• A schedule of budgeted cash collections for trade receivables for each of the months July to September.                                                                                                            
• A schedule of expected cash disbursements for accounts payable for each of the months July to September.                                                                                                     

• A cash budget, with a total column, for the quarter ending September 30, 2018, showing the expected cash receipts and payments for each month and the ending cash balance for each of the months, given that no financing activity took place.                                      (25½ marks)

(b)          Upon receipt of the budget the team manager has now informed you that all companies in the industry in which Classique Household Furnishings operates are required to maintain a minimum cash balance of $140,000 each month. Based on the budget prepared, will the business be meeting this requirement? The business is already heavily indebted, so management does not wish to borrow any additional funds from outside sources. Suggest four (4) internal strategies that the business may employ in order to improve the organization’s monthly cash flow. Each strategy must be fully explained.                                                                                            (5½ marks)

R& V Hotel is consistently incurring losses for the past 2 years though the sales clerk receives customer orders, raises sales invoices at a higher price and processes payments for customers. Hotel customers have contracted prices, however online trade prices automatically loaded in to the system but the Brenda clerk used to amend manually. Mr. Zakariya an internal auditor found some deficiencies, who has taken some necessary actions to cross check those invoices and employees responsibilities and suggested the management immediately to prevent from loss of customers and good will of the hotel.
Based on the above scenario:
1. How the internal audit for R and V hotel can be helpful in resolving the issues they are confronting at the moment? Justify your answer practically
2. If you were Mr. Zakariya, prepare doable audit plan that Mr. Zakariya that you can use for the company and provide recommendations on how to overcome the deficiencies cited in the case?

You are 10 months out from the upcoming hurricane season. You are the Emergency Planner for a mid-sized town in South Florida with several critical infrastructures. Your mayor has as asked you to plan and prepare for the possibility of a direct hitting storm during the upcoming season.

Based on the “Scenario Location” below, identify three key public- private partnerships critical to the emergency planning process in Sunny City and explain the importance of each one. Explain how you would establish and maintain communications with these partnerships throughout the emergency planning process.

Scenario Location:

Sunny City is a fictional mid-sized town in Southeastern Florida. It has a rich history of agriculture, including citrus groves and cattle farms and has been growing in population over the past decade. Route 1 passes through the center of town. There are several bridges over various waterways including two large bridges over the inter-coastal waterway. A privately operated electrical power plant is located near the inter-coastal waterway. Just west of town, a small regional commuter airport was recently built which has drawn in several businesses. Trying to keep up with the growing nature of the town, new communication hubs with fiber-optics have been put in and a waste water treatment facility was built. There is talk about increasing the width of some of the main roads to handle the build-up of traffic, but in the meantime Public Works has been working overtime to keep the roads maintained and operational

6) How does opportunity cost specifically apply to the following situations:

a. A piece of land that is to be devoted to a national park.

b. An abandoned railroad that is given to a community for constructing a bike path

c. The costs of diverting water from a river to irrigate nearby farmland

d. The costs of clear-cutting timberland.

e. A piece of land that is to be converted from farmland to a Scheel’s sporting goods super store.

Addison Manufacturing holds a large portfolio of debt securities as an investment. The fair value of the portfolio is greater than its original cost, even though some debt securities have decreased in value. Sam Beresford, the financial vice president, and Angie Nielson, the controller, are near year-end in the process of classifying for the first time this securities portfolio in accordance with GAAP. Beresford wants to classify those securities that have increased in value during the period as trading securities in order to increase net income this year. He wants to classify all the securities that have decreased in value as held-to-maturity.

Nielson disagrees. She wants to classify those debt securities that have decreased in value as trading securities and those that have increased in value as held-to-maturity. She contends that the company is having a good earnings year and that recognizing the losses will help to smooth the income this year. As a result, the company will have built-in gains for future periods when the company may not be as profitable.

(a)  

Will classifying the portfolio as each proposes actually have the effect on earnings that each says it will?

(b)  

Is there anything unethical in what each of them proposes? Who are the stakeholders affected by their proposals?

(c)  

Assume that Beresford and Nielson properly classify the entire portfolio into trading, available-for-sale, and held-to-maturity categories. But then each proposes to sell just before year-end the securities with gains or with losses, as the case may be, to accomplish their effect on earnings. Is this unethical?

Address how your hotel/resort will impact the surrounding community in the areas of energy and water use as well as waste-trash and sewerage. The project will identify how the property, its’ activities and guests will impact the surrounding environment, depending on the nature of your recreational activities. This hotel is located in Islamorada, FL (Florida keys)

Describe the hotel industry, primarily focusing on Hilton, Marriott, and Hyatt. What is its vision or strategy—what constitutes ‘success’ for this organization? Who are the key parties, stakeholders, or power- holders relevant to the problem you are writing about? Describe anything else about the hotel industry's history or culture that seems relevant.

Address how your hotel/resort will impact the surrounding community in the areas of energy and water use as well as waste-trash and sewage. The project will identify how the property, its’ activities and guests will impact the surrounding environment, depending on the nature of your recreational activities. This hotel is located in Islamorada, FL (Florida keys)