I need an answer for a Beauty Salon. My product I would be selling is Shampoo/Conditioning for $10.00. Average service is $50.00. The Question that must be answer is below:

In this week's assignment,you will forecast sales and explore very basic financial building blocks.These basic calculations are central to providing focus and measuring financial progress and health. You will create all these numbers--and while there are no absolute right or wrong answers-try to be as practical and real-world as possible. Any business will have certain fixed cost expenses present that are not directly tied to units produced/sold. Businesses will also have certain variable cost expenses that are directly tied to units produced/sold. From these data, you can determine your break-even point in both units sold and dollars. Referring to your small business venture, discuss and calculate the following: 1. Last week, you set a price for your product/service. Retrieve that to help calculate revenue. Next, decide how many sales (in units) you would make in a year (factoring in all decisions made so far--target market, competition, etc.).What is your gross revenue projection for the year? (unit price x units sold = revenue) 2. There are fixed costs to consider. Give some basic examples of fixed cost expense categories for a business such as yours. Estimate what the associated fixed cost expenses will be on an annual basis for your venture. What is this figure? 3. There are variable costs to consider. Give some basic examples of variable cost expense categories for a business such as yours. Estimate what the associated variable cost expenses will be on a per-unit produced/sold basis. Based on sales projections in #1 above, what then is the total variable cost expenses for the year? 4. Combine total fixed costs and total variable costs. This is your total expenses. What is this figure? 5. Figure your net profit from gross revenue minus total expenses. What is this figure? 6. What is your break-even point in dollars? What is your break-even point in units sold?

Yes it is for a Salon Business

In this Salon I will sell products and offer services

Services are

Shampoo and Sets $25.00

Coloring of Hair $60.00

Relaxing the hair $75.00

Hair Cuts start at $10.00 up to $60.00

Styles starts at $25.00

Products that will be sold are:

Shapoo $10.00

Conditioning $10.00

A set of the two $17.00

Brushes $5.00

Combos $6.00

Hair Dryers $40.00

Curling Irons started at $20.00

These are some of my items for the Salon, I was thinking and average amount of everything giving one figure and coming up with my answer from there.

Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges each separate entity for common services, such as patients’ meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1:

During the year ended June 30, 20x5, Pediatrics charged each patient an average of $300 per day, had a capacity of 60 beds, and had revenue of $6 million for 365 days. In addition, Pediatrics directly employed personnel with the following annual salary costs per employee: supervising nurses, $25,400; nurses, $20,700; and aides, $8,200.

Delaware Medical Center has the following minimum departmental personnel requirements, based on total annual patient days:

Pediatrics always employs only the minimum number of required personnel. Salaries of supervising nurses, nurses, and aides are therefore fixed within ranges of annual patient days.

Pediatrics operated at 100 percent capacity on 85 days during the year ended June 30, 20x1. Administrators estimate that on these 85 days, Pediatrics could have filled another 10 beds above capacity. Delaware Medical Center has an additional 10 beds available for rent for the year ending June 30, 20x2. Such additional rental would increase Pediatrics’ fixed charges based on bed capacity. (In the following requirements, ignore income taxes.)

Required:

Calculate the minimum number of patient days required for Pediatrics to break even for the year ending June 30, 20x2, if the additional 10 beds are not rented. Patient demand is unknown, but assume that revenue per patient day, cost per patient day, cost per bed, and salary rates will remain the same as for the year ended June 30, 20x1.

Assume that patient demand, revenue per patient day, cost per patient day, cost per bed, and salary rates for the year ending June 30, 20x2, remain the same as for the year ended June 30, 20x1. Prepare a schedule of Pediatrics’ increase in revenue and increase in costs for the year ending June 30, 20x2. Determine the net increase or decrease in Pediatrics’ earnings from the additional 20 beds if Pediatrics rents this extra capacity from Delaware Medical Center.

Media Mogul Inc.

Media Mogul Inc. is a marketing company that offers a variety of marketing offerings to its customers.

Specifically:

• Media will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for

$250K. These amounts represent Media’s charges for these items when Media sells them separately to

customers. The TV commercial, the app, and the Facebook page are not interrelated; that is, each

functions independently of the other offerings.

• If a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are

50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of

the development period (25 percent at mid-point, 25 percent at completion).

• If the app is downloaded 500K times or more in the first month, there is a one-time bonus of $250K

payable to Media.

Stone, a customer, approaches Media with the hopes of reinventing its image to a younger customer base.

Stone has a verbal agreement with Media that is based on Media’s unsigned quote to Stone on November 30,

20X5, for one TV commercial, one app, and a Facebook page. The agreement creates enforceable rights and

obligations pursuant to Media’s customary business practices. None of these items can be redirected by

Media to another customer. Media performed a credit check on Stone and has determined that Stone has the

intention and ability to pay Media for fulfilling its portion of the contract. Stone is required to pay Media for

performance completed to date if Stone cancels the contract with Media for reasons other than Media’s

failure to perform under the contract as promised.

Stone makes a payment on November 30, 20X5, in the amount of $750K pursuant to the agreement. From the

date of the quote, it takes Media six months to develop and produce the TV commercial, two weeks to

complete the Facebook page, and three months to complete a fully functioning app. Media does not think that

the app will be downloaded 500K times in the first month because Stone’s customer base does not quickly

accept newly developed technology. On the basis of its experience with similar technology, Media has

determined that it takes over three months for Stone’s users to begin to download its apps.

Required

Media’s CFO is trying to understand the new revenue recognition model and has asked you to explain how

Media would account for the above scenario under the new revenue recognition standard.

1. How should Media account for the above offering with Stone under the new revenue recognition

model?

2.How would your conclusions change if:

a. The app sold to Stone is actually downloaded more than 500K times in the first month?

b. Media believed at the outset that there is about a 75 percent chance that the app will be

downloaded more than 500K times and it is probable that there will not be a significant

reversal of revenue?

Total marks: 50, plus 10 bonus marks for an answer in PLAN/DO/REPORT format.

An Elevating Business. The annual global market for selling elevators is worth $40bn and the annual global market for maintaining them is also worth $40bn. Just 5 companies have 80% of the market for sales: Kone, Otis, Schindler, Thyssenkrupp and Hitachi, however they have only 40% of the market for maintenance since a large number of small companies maintain elevators even though they don’t sell them. Thyssenkrupp is one of the most innovative elevator suppliers, having recently developed technology that allows elevators to move sideways and well as up and down. Another major innovator is Kone that has recently developed extra strength cables which allow very long travel heights, suited to new buildings over 100 stories high in Asia and the Middle East.

Thyssenkrupp is considering selling its elevator division, to cover financial problems in other divisions of the company. You are a financial analyst, assessing the probability of Thyssenkrupp’s elevator division being sold and to whom and also assessing the revenues if it is sold. Based on your experience in the elevator business, you estimate the following probabilities.

The probability of global sales increasing by > 2% next year is 0.25; and the probability of global maintenance revenues increasing by > 2% next year is 0.2. If at least one of these markets increases by > 2% next year, Thyssenkrupp will not sell its elevator division.

If Thyssenkrupp does want to sell, it could plan on selling to: 

a private equity company with a probability of 0.35. This would bring a quick infusion of cash to Thyssenkrupp    to assist its other divisions, 

Kone, with a probability of 0.45, resulting in a very large and innovative company, 

Otis, Schindler or Hitachi with a probability of 0.2.

If Thysennkrupp wants to sell to Kone, the deal may be prevented by European regulators with a probability of 0.65, since it would result in a single very large European elevator company which could constitute a monopoly.
(a) (20) Draw a probability tree to represent the above situation.
(b) (5) Which method of probability assessment was used to estimate the above probabilities?
(c) (10) What is the probability Thyssenkrupp does actually sell its elevator division to Kone?
(d) (15) You estimate that if Kone buys Thyssenkrupp’s elevator division the revenues will be as follows:

What is your estimate of the mean and standard deviation of the total revenues of the combined company assuming that Kone buys Thyssenkrupp’s elevator division?

Trend Analysis - The following data pertain to Company A:

Common-Size Income Statements - Company A reported the following income statements:

Using the data above, answer the following: (provide formulas used to answer questions)

(1) Show the decomposition of return on equity for Company A for Years 1 and 2?

(2) Compute the return on assets for Company A for Years 1 and 2?

(3) Comment on Company A's use of debt?

Trend Analysis - The following data pertain to Company B:

Common-Size Income Statements - Company B reported the following income statements:

Using the data provided above, answer the following questions: (provide formulas used to answer questions)

(4) Show the decomposition of return on equity for Company B for Years 1 and 2?

(5) Compute the return on assets for Company B for Years 1 and 2?

(6) Comment on Company B's use of debt?

Cigarettes in Australia have long been subject to excise tax – a per cigarette tax levied on the suppliers of cigarettes. (The tax applies to all tobacco products, however for the purposes of this exam assume cigarette and tobacco consumption are the same thing). In 2016 the federal government announced that the excise tax rate for cigarettes would rise by 12.5% a year for the next 4 years. Over this period tax revenue collected from the sale of cigarettes has increased considerably. Legal cigarette consumption has fallen to an all-time low in Australia due to a combination of the tax on cigarettes, and public health initiatives such as plain packaging, health warnings and banning advertisements.

Part (a) Consider the following two policies aimed at reducing cigarette smoking: (i) A tax on the suppliers of cigarettes, and (ii) The public health campaign initiatives. Illustrate both of these policies separately using a fully labelled and explained demand and supply diagram for each of parts (i) and (ii). Do not use actual numbers; this is intended as a theoretical exercise. Compare and contrast the impact on equilibrium price and quantity of cigarettes of each of these policies, explaining your answer with reference to the diagrams. Consider the impact of each policy on government revenue. Explain your answer. Can the impact on government revenue be illustrated on either of your diagrams? If so, indicate and explain the area on the diagram/s that represents government revenue.

Part (b) Consider the following quotation: “When a tax is levied on a good, a share of it is paid by both the consumer and producer. In the case of cigarettes however much more of the burden of the tax is paid by consumers, even though the tax is levied on the suppliers of cigarettes.” Why might this be the case? In your answer explain both parts (sentences) of this statement. If the price of a packet of cigarettes increased by 10%, and in light of your explanation of the quotation, would you expect the quantity of cigarettes consumed to increase or decrease, and by more or less than 10%? Explain your answer.

Part (c) Taxation of cigarettes is often justified on the grounds that cigarette smoking creates externalities. What is meant by the term “externalities” in this context? Give two examples of externalities created by cigarette smoking and explain how a tax on cigarettes could potentially address both of these. Using a fully labelled and explained diagram explain how a tax can increase efficiency in the cigarette market. What size tax should be levied to maximise efficiency in this market? (Indicate the efficient tax size on your diagram – no actual number required).

Part (d) Is a tax on cigarettes a regressive tax or a progressive tax? Explain your answer, including a definition of both terms.

Part (e) Australia’s police forces and border forces have warned that rapid rises in the tax on cigarettes have had unintended consequences of encouraging illegal activity such as smuggling, with proceeds funding other criminal activities. Explain why this might be the case. In your answer refer to the role that elasticity of demand plays in making illegal activity more profitable.

Cigarettes in Australia have long been subject to excise tax – a per cigarette tax levied on the suppliers of cigarettes. (The tax applies to all tobacco products, however for the purposes of this question assume cigarette and tobacco consumption are the same thing). In 2016 the federal government announced that the excise tax rate for cigarettes would rise by 12.5% a year for the next 4 years. Over this period tax revenue collected from the sale of cigarettes has increased considerably. Legal cigarette consumption has fallen to an all-time low in Australia due to a combination of the tax on cigarettes, and public health initiatives such as plain packaging, health warnings and banning advertisements.

Part (a) Consider the following two policies aimed at reducing cigarette smoking:

(i) A tax on the suppliers of cigarettes, and

(ii) The public health campaign initiatives.

Illustrate both of these policies separately using a fully labelled and explained demand and supply diagram for each of parts (i) and (ii). Do not use actual numbers; this is intended as a theoretical exercise.

Compare and contrast the impact on equilibrium price and quantity of cigarettes of each of these policies, explaining your answer with reference to the diagrams.

Consider the impact of each policy on government revenue. Explain your answer. Can the impact on government revenue be illustrated on either of your diagrams? If so, indicate and explain the area on the diagram/s that represents government revenue.

Part (b) Consider the following quotation:

“When a tax is levied on a good, a share of it is paid by both the consumer and producer. In the case of cigarettes however much more of the burden of the tax is paid by consumers, even though the tax is levied on the suppliers of cigarettes.”

Why might this be the case? In your answer explain both parts (sentences) of this statement.

If the price of a packet of cigarettes increased by 10%, and in light of your explanation of the quotation, would you expect the quantity of cigarettes consumed to increase or decrease, and by more or less than 10%? Explain your answer.

Part (c) Taxation of cigarettes is often justified on the grounds that cigarette smoking creates externalities. What is meant by the term “externalities” in this context? Give two examples of externalities created by cigarette smoking and explain how a tax on cigarettes could potentially address both of these. Using a fully labelled and explained diagram explain how a tax can increase efficiency in the cigarette market. What size tax should be levied to maximise efficiency in this market? (Indicate the efficient tax size on your diagram – no actual number required).

Part (d) Is a tax on cigarettes a regressive tax or a progressive tax? Explain your answer, including a definition of both terms.

Part (e) Australia’s police forces and border forces have warned that rapid rises in the tax on cigarettes have had unintended consequences of encouraging illegal activity such as smuggling, with proceeds funding other criminal activities. Explain why this might be the case. In your answer refer to the role that elasticity of demand plays in making illegal activity more profitable.

You have to include the appropriate output in your report. Your analysis output should be properly shaped such as changing the decimal points, copy, and pasted on to your report paper. when you label your output, specify what program did you use to bring the regression output. Ex: Excel Regression Analysis. Submit in one file using docs or PDF format. (1-2 page including regression output)

• Recognizing appropriate tools & performing all analysis that needs to be done
• Able to organize and perform necessary analysis in proper sequence
• Accurate analysis output, interpretation, drawing the correct answers and reporting in a professional manner

We recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our revenue from our subscriber base. Currently we have about 15,059 subscribers, generating monthly revenue of $146,823.

Some have suggested we should cut price, as customers tend to be fairly price sensitive for add-on packages. However, in this case, if we lower price for our new subscribers, we really need to cut it to all of our existing subscribers as well. I have some concerns that lowering price will be counter-productive.

The marketing department calculated some subscription levels at various price points in this region, and I need you to perform the analysis. Specifically, I want you to estimate the price sensitivity of customers at the current price. Please address the following questions:

(1) If we lower the price, do you think this is likely to lead to higher revenue, and

(2) how much potential revenue can we generate and how low should go with our price.

Can you please describe what you mean by "reference" this was all the information provided by my professor.

1)Company XYZ had total credit sales of $1,235,000. Calculate bad debt expense assuming the company estimates bad debt at 1% of sales made during the year (using the income statement approach). Record the journal entry to record the bad debt estimation.

2) Geeves Co made $5,000,000 of sales during 2011. The company’s ending A/R balance is $300,000 (debit) and the ending balance in the Allowance for Doubtful Accounts account is $2,000 (credit).

Calculate bad debt expense assuming the company estimates bad debt at 5% of ending A/R (using the balance sheet approach). Record the journal entry to record the bad debt estimation. Don’t forget to factor in the existing Allowance balance.

3)On October 18, 2020, Reese's Co. accepted a note receivable in the amount of $400,000. The note carries an interest rate of 13% and is due in one year. Calculate the interest amount earned at December 31, 2020. Interest starts accruing on October 19th. Assume a 360 day year. Round to the nearest whole dollar.

4) On January 5, 2011, Breaker Ltd receives a $10,000, 90 day, 11% note from a customer (K. Durant) from a sale of services. Record the journal entry for the sale (and acceptance of note) and the journal entry when the note comes due (record all interest earned). Assume a 360 day year.

January 5, 2011:

April 5, 2011

5)

G. Love and Special Sauce Inc had $400,000 in sales during 2020. The company’s beginning A/R balance is $25,000 and its ending A/R balance is $32,000.

Calculate A/R Turnover: [select] ["9.78", "14.55", "18.11", "13.21"]      

Calculate Days Sales Outstanding: [select] ["22.8 days", "25.1 days", "29.2 days", "26.4 days"]      

During 2018, Speedway Financial Corporation had the following held for trading investment transactions:

Feb. 1 Purchased 580 CBF common shares for $34,220.

Mar. 1 Purchased 780 RSD common shares for $21,840.

Apr. 1 Purchased 7% MRT bonds at face value, for $65,000. Interest is received semi-annually on April 1 and October 1.

July 1 Received a cash dividend of $3 per share on the CBF common shares.

Aug. 1 Sold 180 CBF common shares at $57 per share.

Sept. 1 Received a cash dividend of $1.40 per share on the RSD common shares.

Oct. 1 Received the semi-annual interest on the MRT bonds.

1 Sold the MRT bonds for $67,000.

Dec. 31 The market prices of the CBF and RSD common shares were $54 and $29 per share, respectively.

Speedway had the following held for trading investment transactions in 2019:

Mar. 1 Sold 400 CBF common shares for $23,200.

June 1 Purchased 2,200 KEF common shares for $30,800.

Sept. 1 Received a cash dividend of $1.40 per share on the RSD common shares.

Oct. 1 Sold 390 RSD common shares for $12,090.

Dec. 31 The market prices of the RSD and KEF common shares were $33 and $11 per share, respectively.

Record the above 2019 transactions including any required adjusting entries, continuing the use of the fair value through profit or loss model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order presented in the question.)

Show how the investments would be presented on the statement of financial position at December 31, 2019.

SPEEDWAY FINANCIAL CORPORATION

Statement of Financial Position (Partial)

December 31, 2019

Current Assets

Held for Trading Investments $ _____________

Determine the balance in each of the income statement accounts that are affected in the transactions above and indicate how they would be presented on the income statement for the year ended December 31, 2019. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

SPEEDWAY FINANCIAL CORPORATION

  Income Statement (Partial)

December 31, 2019

Dividends

Dividend Revenue $ __________________

Realized Gain on Held for Trading Investment __________________

Interest Revenue ___________________

Total amount     ________________________