Individual............................................................................................. $ 40 Student................................................................................................ 25 Family.................................................................................................. 95 Cases City Racquetball Club (CRC) offers racquetball and other physical fitness facilities to its members. There are four of these clubs in the metropolitan area. Each club has between 1,800 and 2,500 members. Revenue is derived from annual membership fees and hourly court fees. The annual membership fees are as follows: ■ Case 9–45 Using Budgets to Evaluate Business Decisions (LO 9-2, 9-3, 9-7) The hourly court fees vary from $6 to $10 depending upon the season and the time of day (prime versus nonprime time). The peak racquetball season is considered to run from September through April. During this period, court usage averages 90 to 100 percent of capacity during prime time (5:00–9:00 p.m.) and 50 to 60 percent of capacity during the remaining hours. Daily court usage during the off-season (i.e., summer) averages only 20 to 40 percent of capacity. 20x1 January February March 1st Quarter Cash receipts (from schedule 2) ............................................................. Less: Cash disbursements (from schedule 4) ......................................... Change in cash balance during period due to operations..................... Sale of marketable securities (1/2/x1) .................................................... Proceeds from bank loan (1/2/x1) .......................................................... Purchase of equipment ........................................................................... Repayment of bank loan (3/31/x1) ......................................................... Interest on bank loan .............................................................................. Payment of dividends .............................................................................. Change in cash balance during first quarter .......................................... Cash balance, 1/1/x1 .............................................................................. Cash balance, 3/31/x1 ............................................................................ 412 Chapter 9 Financial Planning and Analysis: The Master Budget Most of CRC’s memberships have September expirations. A substantial amount of the cash receipts are collected during the early part of the racquetball season due to the renewal of the annual membership fees and heavy court usage. However, cash receipts are not as large in the spring and drop significantly in the summer months. CRC is considering changing its membership and fee structure in an attempt to change its cash receipts. Under the new membership plan, only an annual membership fee would be charged, rather than a membership fee plus hourly court fees. There would be two classes of membership as follows: Individual ............................................................................................................. $250 Family .................................................................................................................. 400 The annual fee would be collected in advance at the time the membership application is completed. Members would be allowed to use the racquetball courts as often as they wish during the year under the new plan. All future memberships would be sold under these new terms. Current memberships would be honored on the old basis until they expire. However, a special promotional campaign would be instituted to attract new members and to encourage current members to convert to the new membership plan immediately. The annual fees for individual and family memberships would be reduced to $200 and $300, respectively, during the two-month promotional campaign. In addition, all memberships sold or renewed during this period would be for 15 months rather than the normal one-year period. Current members also would be given a credit toward the annual fee for the unexpired portion of their membership fee, and for all prepaid hourly court fees for league play that have not yet been used. CRC’s management estimates that 60 to 70 percent of the present membership would continue with the club. The most active members (45 percent of the present membership) would convert immediately to the new plan, while the remaining members who continue would wait until their current memberships expire. Those members who would not continue are not considered active (i.e., they play five or less times during the year). Management estimates that the loss of members would be offset fully by new members within six months of instituting the new plan. Furthermore, many of the new members would be individuals who would play during nonprime time. Management estimates that adequate court time will be available for all members under the new plan. If the new membership plan is adopted, it would be instituted on February 1, well before the summer season. The special promotional campaign would be conducted during March and April. Once the plan is implemented, annual renewal of memberships and payment of fees would take place as each individual or family membership expires. Required: Your consulting firm has been hired to help CRC evaluate its new fee structure. Write a letter to the club’s president answering the following questions. 1. Will City Racquetball Club’s new membership plan and fee structure improve its ability to plan its cash receipts? Explain your answer. 2. City Racquetball Club should evaluate the new membership plan and fee structure completely before it decides to adopt or reject it. a. Identify the key factors that CRC should consider in its evaluation. b. Explain what type of financial analyses CRC should prepare in order to make a complete evaluation. 3. Explain how City Racquetball Club’s cash manage

City Racquetball Club (CRC) offers racquetball and other physical fitness facilities to its members. There are four of these clubs in the metropolitan area. Each club has between 1,800 and 2,500 members. Revenue is derived from annual membership fees and hourly court fees. The annual membership fees are as follows:

Individual ............................................................................................$ 40

Student ............................................................................................... $25

Family ................................................................................................. $95

The hourly court fees vary from $6 to $10 depending upon the season and the time of day (prime versus nonprime time).The peak racquetball season is considered to run from September through April. During this period, court usage averages 90 to 100 percent of capacity during prime time (5:00–9:00 p.m.) and 50 to 60 percent of capacity during the remaining hours. Daily court usage during the off-season (i.e., sum-mer) averages only 20 to 40 percent of capacity.

The hourly court fees vary from $6 to $10 depending upon the season and the time of day (prime versus nonprime time).The peak racquetball season is considered to run from September through April. During this period, court usage averages 90 to 100 percent of capacity during prime time (5:00–9:00 p.m.) and 50 to 60 percent of capacity during the remaining hours. Daily court usage during the off-season (i.e., sum-mer) averages only 20 to 40 percent of capacity.

Most of CRC’s memberships have September expirations. A substantial amount of the cash receipts are collected during the early part of the racquetball season due to the renewal of the annual membership fees and heavy court usage. However, cash receipts are not as large in the spring and drop significantly in the summer months.CRC is considering changing its membership and fee structure in an attempt to change its cash receipts. Under the new membership plan, only an annual membership fee would be charged, rather than a membership fee plus hourly court fees. There would be two classes of membership as follows:

Individual ............................................................................................................$250

Family ................................................................................................................. $400

The annual fee would be collected in advance at the time the membership application is completed. Members would be allowed to use the racquetball courts as often as they wish during the year under the new plan.All future memberships would be sold under these new terms. Current memberships would be honored on the old basis until they expire.

However, a special promotional campaign would be instituted to attract new members and to encourage current members to convert to the new membership plan immediately.The annual fees for individual and family memberships would be reduced to $200 and $300, respectively, during the two-month promotional campaign. In addition, all memberships sold or renewed during this period would be for 15 months rather than the normal one-year period. Current members also would be given a credit toward the annual fee for the unexpired portion of their membership fee, and for all prepaid hourly court fees for league play that have not yet been used.CRC’s management estimates that 60 to 70 percent of the present membership would continue with the club. The most active members (45 percent of the present membership) would convert immediately to the new plan, while the remaining members who continue would wait until their current memberships expire. Those members who would not continue are not considered active (i.e., they play five or less times during the year). Management estimates that the loss of members would be offset fully by new members within six months of instituting the new plan. Furthermore, many of the new members would be individuals who would play during nonprime time. Management estimates that adequate court time will be available for all members under the new plan.If the new membership plan is adopted, it would be instituted on February 1, well before the sum-mer season. The special promotional campaign would be conducted during March and April. Once the plan is implemented, annual renewal of memberships and payment of fees would take place as each individual or family membership expires.

Required: Your consulting firm has been hired to help CRC evaluate its new fee structure. Write a letter to the club’s president answering the following questions.

To complete all parts of the problems correctly you should start each assignment with preparing an Excel workbook and then add a written response for each question.

1. Will City Racquetball Club’s new membership plan and fee structure improve its ability to plan its cash receipts? Explain your answer.

2. City Racquetball Club should evaluate the new membership plan and fee structure completely before it decides to adopt or reject it.

a. Identify the key factors that CRC should consider in its evaluation.

b. Explain what type of financial analyses CRC should prepare in order to make a complete evaluation.

3. Explain how City Racquetball Club’s cash management would differ from the present if the new membership plan and fee structure were adopted.

In 2020, Carson is claimed as a dependent on his parent's tax return. His parents report taxable income of $200,000 (married filing jointly). Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Tax Rates for Net Capital Gains and Qualified Dividends for reference.

a. Carson is 17 years old at year-end and earned $14,000 from his summer job and part-time job after school. This was his only source of income.

b. Carson is 23 years old at year-end. He is a full-time student and earned $14,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

It is a tax question.

1.1 Below is a table containing the balance of payments accounts for a hypothetical economy. All figures are in $ billions. ROW = “The rest of the world.”

Complete the table by entering correct and consistent figures in the question mark boxes.

Compare the financial performance of the two organizations and provide suggestions (based on the comparison) for the Walden Conservatory of Music, both from a financial and operational perspective. In MEMO format.

New England Conservatory of Music Based on 2017 Form 990

Liquid Funds Indicator = 4.25 months

Debt to Asset Ratio= 18.9%

Debt to NA ratio = 1.239

Program Service Ratio = 85.9%

Savings Indicator = 22.5%

Current Ratio = 5.36

Defensive Interval = 31.19

Liquid Funds Amount = No Long term liability

Return on Investment = 40.7%

Times Interest Earned Ratio = 22.2

Walden Conservatory of Music Based on 2017 From 990

Liquid Funds Indicator: 1.52 months

Debt to Asset Ratio: 18.3%

Debt to NA Ratio: 22

Program Service Ratio: 75.9%

Savings Indicator: 4.12%

Current Ratio: 2.34

Defensive Interval: 2.43

Liquid Funds Amount: $

Return on Investment: 6.9%

Times Interest Earned Ratio: 6.36

The L:inton family tells you the following regarding their financial situation for 2015: Their gross salary is $82,000. They also earned $2,000 in interest from a savings account. They paid real estate taxes of $5,000 and interest on their mortgage of $5,000. They earned $1,500 in interest from a General Motors bond. They made $6,000 on the sale of 5 acres that they had owned for 2 years. They sold AES stock they owned for 10 months for a gain of $2,000. The couple has two children.  Exemptions are $3,800/person.

a. WHAT IS THEIR TAXABLE INCOME? SHOW YOUR WORK STEP BY STEP.

b.Use the table below to determine their tax liability: SHOW YOUR WORK.

c. What is the family's marginal tax rate?

d. What is the family's average rate? Show your calculation.

(4). Record the following selected transactions for April in a two-column journal, identifying each entry by letter. Omit explanation.

April

            (a) On April 1^st, received $18,000 from Katie Long, owner.

(b) On April 2nd, purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder.

(c) On April 5^th, paid $2,300 for rent for April.

(d) On April 8^th, purchased $1,500 of supplies on account.

(e) On April 10^th, recorded $9,800 of fees earned on account.

(f) On April 17^th, received $7,500 in cash for fees earned.

(g) On April 21^st, paid $1,200 to creditors on account.

(h) On April 25^th, paid wages of $3,425.

(i) On April 28^th, received $7,900 from customers on account.

(j) On April 30^th, recorded owner's withdrawal of $1,875.

Should I give the Page Quality (PQ) rate of LOW or LOWEST?

1. True/False - A page with a mismatch between the location of the page and the rate location; for example an English (UK) page for an English (US) rating task.

I think it's false because of this statement in the general guidelines. Do not consider the country or location of the page or website for PQ rating. For example, English (US) raters should use the same PQ standards when rating pages from other English language websites (UK) as they use when rating pages from the U.S websites. In other words, English (US) raters should not lower the PQ rating because the page location (UK) does not match the task location.

2. True/False A file type other than a webpage, for example: a PDF, a Microsoft Word document, or a PNG file.

3. True/False A page that gets a Didn't Load flag.

4. True/False Pages with an obvious problem with functionality or errors in displaying content.