A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied.
| Day | Revenue | Occupied | Day | Revenue | Occupied | ||||||||
| 1 | $ | 1,452 | 40 | 14 | $ | 1,425 | 31 | ||||||
| 2 | 1,361 | 20 | 15 | 1,445 | 51 | ||||||||
| 3 | 1,426 | 21 | 16 | 1,439 | 62 | ||||||||
| 4 | 1,470 | 54 | 17 | 1,348 | 45 | ||||||||
| 5 | 1,456 | 62 | 18 | 1,450 | 41 | ||||||||
| 6 | 1,430 | 29 | 19 | 1,431 | 62 | ||||||||
| 7 | 1,354 | 22 | 20 | 1,446 | 47 | ||||||||
| 8 | 1,442 | 21 | 21 | 1,485 | 43 | ||||||||
| 9 | 1,394 | 15 | 22 | 1,405 | 38 | ||||||||
| 10 | 1,459 | 65 | 23 | 1,461 | 36 | ||||||||
| 11 | 1,399 | 41 | 24 | 1,490 | 61 | ||||||||
| 12 | 1,458 | 35 | 25 | 1,426 | 65 | ||||||||
| 13 | 1,537 | 51 | |||||||||||
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Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.) c-1. State the decision rule for 0.025 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.) c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.) c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.02 significance level. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.) |
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In: Statistics and Probability
In: Accounting
What immediate changes, if any, has Uber company made to its basic business model right now, during the crisis of the Coronavirus. How are riders/customers being served during this crisis period ? Is Uber able to retain employees? What changes have been implemented for Uber company to continue to offer goods and services that's are a part of its brand? Or has there been an adjustment in goods and services offered?
In: Operations Management
[The following information applies to the questions
displayed below.]
Arndt, Inc. reported the following for 2021 and 2022 ($ in
millions):
| 2021 | 2022 | ||||||
| Revenues | $ | 956 | $ | 1,048 | |||
| Expenses | 812 | 868 | |||||
| Pretax accounting income (income statement) | $ | 144 | $ | 180 | |||
| Taxable income (tax return) | $ | 88 | $ | 214 | |||
| Tax rate: 25% | |||||||
3. Compute the deferred tax amounts that should be reported on the 2021 balance sheet. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Please the answer for 3
In: Accounting
1.
Trident Developers purchased a computer system for $100,000 on June 4, 2003. The computer system is used for business 100% of the time. The accountant for the company elected to take a $12,000 Section 179 deduction, and the asset qualified for a special depreciation allowance (see Table 17-4).
Click here for Table 17-4
a. What was the basis for depreciation of the computer system?
$
b. What was the amount of the first year's depreciation using MACRS?
Click here for Table 17-1 and Table 17-2
$
2.
Use the declining-balance method of depreciation to complete the table below. Round to the nearest hundredth of a percent when necessary.
Do not enter the percent symbol in your answer.
| Useful Life (Years) |
Straight-Line Rate (%) |
Multiple (%) |
Declining-Balance Rate (%) |
| 3 | % | 200 | % |
3.
Use the declining-balance method of depreciation to complete the table below. Round to the nearest hundredth of a percent when necessary.
Do not enter the percent symbol in your answer.
| Useful Life (Years) |
Straight-Line Rate (%) |
Multiple (%) |
Declining-Balance Rate (%) |
| 9 | % | 150 | % |
4.
|
Сompanies depreciate, or write off, the expense of tangible assets such as trucks and equipment over a period of their useful lives. Many companies also have intangible assets that must be accounted for as an expense over a period of time. Intangible assets are resources that benefit the company but do not have any physical substance. Some examples are copyrights, franchises, patents, trademarks, and leases. In accounting, intangible assets are written off in a procedure known as asset amortization. This is much like straight-line depreciation, but there is no salvage value. You are the accountant for Front Line Pharmaceuticals, Inc. In January 2000, the company purchased the patent rights for a new medication from Novae, Inc., for $8,700,000. The patent had 15 years remaining as its useful life. In January 2005, Front Line Pharmaceuticals successfully defended its right to the patent in a lawsuit that cost $500,000 in legal fees. a. Using the straight-line method, calculate the patent's annual amortization expense for the years before the lawsuit. $ b. Calculate the revised annual amortization expense for the remaining years after the lawsuit. $ |
In: Accounting
The financial department of a company that produces memory chips for microcomputers arrived at the following price-demand function and the corresponding revenue function:
p(x) = 75 – 3x price-demand
R(x) = x ? p(x) = x(75 – 3x) revenue function
Where p(x) is the wholesale price in dollars at which x million chips can be sold and R(x) is in millions of dollars. Both functions have domain 0 ? x ? 20. They also found the cost function to be C(x) = 125 + 16x for manufacturing and selling x million chips. Find the profit function and determine the number of chips that should be sold for maximum profit. Find the maximum profit. Find the maximum revenue and the number of chips that need to be sold to reach that maximum. Graph the cost, revenue, and profit functions in the same window on your calculator. (Use window x = 0 to 20, and y = 0 to 600). Round your answers to the nearest whole number. Round the numbers of chips up to the next whole number.
a.) Profit function is simplified form __________
b.) Number of chips for maximum profit _________
c.) Number of chips for maximum revenue _______
d.) Maximum profit ______
e.) Maximum revenue _______
f.) What is the profit when the revenue is at its maximum? _______
g.) Explain why the maximum revenue is different from the maximum profits_____________
**Please show ALL work!
In: Economics
In: Accounting
On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
| Accounts | Debit | Credit | ||||
| Cash | $ | 43,500 | ||||
| Accounts Receivable | 46,100 | |||||
| Supplies | 8,300 | |||||
| Equipment | 72,000 | |||||
| Accumulated Depreciation | $ | 9,800 | ||||
| Accounts Payable | 15,400 | |||||
| Common Stock, $1 par value | 18,000 | |||||
| Additional Paid-in Capital | 88,000 | |||||
| Retained Earnings | 38,700 | |||||
| Totals | $ | 169,900 | $ | 169,900 | ||
| During January 2018, the following transactions occur: |
| January 2 | Issue an additional 2,000 shares of $1 par value common stock for $40,000. |
| January 9 | Provide services to customers on account, $16,800. |
| January 10 | Purchase additional supplies on account, $5,700. |
| January 12 | Repurchase 1,100 shares of treasury stock for $21 per share. |
| January 15 | Pay cash on accounts payable, $17,300. |
| January 21 | Provide services to customers for cash, $49,900. |
| January 22 | Receive cash on accounts receivable, $17,400. |
| January 29 |
Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15. |
|
(Hint: Grand Finale Fireworks had 18,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.) |
|
| January 30 | Reissue 900 shares of treasury stock for $23 per share. |
| January 31 | Pay cash for salaries during January, $42,800. |
The following information is available on January 31, 2018.
1. Prepare the closing journal entries for revenue, expenses, and dividends.
2. Prepare the income statement and balance sheet.
3. And complete the analysis below:
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In: Accounting
CASE 1
Walmart is the world’s largest and most successful retailer, with more than $485 billion in 2016 sales and nearly 11,700 stores worldwide, including more than 4,600 in the United States. Walmart has 2.3 million employees and ranks number one on the Fortune 500 list of companies. Walmart had such a large and powerful selling machine that it really didn’t have any serious competitors—until now. Today Walmart’s greatest threat is Amazon.com, often called the “Walmart of the Web.” Amazon sells not only books but just about everything else people want to buy—DVDs, video and music streaming downloads, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics—notably the Amazon Kindle e-book reader, Fire tablet, Echo and Tap speakers, and Fire TV streaming media player. No other online retailer can match Amazon’s breadth of selection, low prices, and fast, reliable shipping. For many years, Amazon has been the world’s largest e-commerce retailer with the world’s largest and most powerful online selling machine. Moreover, Amazon has changed the habits and expectations of consumers in ways to which Walmart and other retailers must adapt. According to Brian Yarbrough, a retail analyst at Edward Jones in St. Louis, Amazon and online retailing is probably the biggest disrupter of retail since Walmart itself. Walmart was founded as a traditional, offline, physical store in 1962, and that’s still what it does best. But it is being forced to compete in e-commerce as well. Eight years ago, only one-fourth of all Walmart customers shopped at Amazon.com, according to data from researcher Kantar Retail. Today, however, half of Walmart customers say they’ve shopped at both retailers. Online competition and the profits to be reaped from e-commerce have become too important to ignore. Walmart’s traditional customers—who are primarily bargain hunters making less than $50,000 per year—are becoming more comfortable using technology. More affluent customers who started shopping at Walmart during the recession are returning to Amazon as their finances improve. Amazon has started stocking merchandise categories that Walmart traditionally sold, such as vacuum bags, diapers, and apparel, and its revenue is growing much faster than Walmart’s. In 2016, Amazon had sales of nearly $136 billion. For online shopping, Amazon has some clear-cut advantages. Amazon has created a recognizable and highly successful brand in online retailing. The company has developed extensive warehousing facilities and an extremely efficient distribution network specifically designed for web shopping. Its premium shipping service, Amazon Prime, provides fast “free” two-day shipping at an affordable fixed annual subscription price ($99 per year), often considered to be a weak point for online retailers. According to the Wall Street Journal, Amazon’s shipping costs are lower than Walmart’s, ranging from $3 to $4 per package, while Walmart’s online shipping can run $5 to $7 per parcel. Shipping costs can make a big difference for a store like Walmart where popular purchases tend to be low-cost items like $10 packs of underwear. It makes no sense for Walmart to create a duplicate supply chain for e-commerce. However, Walmart is no pushover. It is an even larger and more recognizable retail brand than Amazon. Consumers associate Walmart with the lowest price, which Walmart has the flexibility to offer on any given item because of its size. The company can lose money selling a hot product at extremely low margins and expect to make money on the strength of the large quantities of other items it sells. Walmart also has a significant physical presence, and its stores provide the instant gratification of shopping, buying an item, and taking it home immediately as opposed to waiting when ordering from Amazon. Seventy percent of the U.S. population is within five miles of a Walmart store, according to company management. Walmart has steadily increased its investment in its online business, spending between $1.2 billion and $1.5 billion annually in 2015 and the next few years on e-commerce. This includes fulfillment centers and technology and purchases such as $3 billion for Jet.com to secure expertise for delivering the lowest-cost basket of goods online. Walmart.com is now the second-most visited e-commerce site in the United States with 88 million unique visitors per month. Walmart has constructed one of the world’s largest private cloud computing centers, which provides the computing horsepower for Walmart to increase the number of items available for sale on Walmart.com from 1 million three years ago to more than 50 million today. In the spring of 2015, the company opened four new fulfillment centers around the country, each of which is more than 1 million square feet. To further counter Amazon, Walmart introduced its own free two-day shipping program for orders totaling more than $35. New technology will also give Walmart more expertise in improving the product recommendations for web visitors to Walmart.com, using smartphones as a marketing channel, and personalizing the shopping experience. Walmart has been steadily adding new applications to its mobile and online shopping channels and is expanding its integration with social networks such as Pinterest. More than half of Walmart customers own smartphones. Walmart has designed its mobile app to maximize Walmart’s advantage over Amazon: its physical locations. About 140 million people visit a Walmart store each week. The app’s Walmart Pay feature enables users to quickly, easily and securely pay with their smartphones in all Walmart stores. Users link a credit card or bank account to the app. At checkout, they can just scan the phone to pay rather than pulling out their wallets. The app can also store shopping lists, save wish lists, and arrange online orders. About 22 million people now use the app as they shop. The Walmart website uses software to monitor prices at competing retailers in real time and lower its online prices if necessary. The company is also doubling inventory sold from third-party retailers in its online marketplace and tracking patterns in search and social media data to help it select more trendy products. This strikes directly at Amazon’s third-party marketplace, which accounts for a significant revenue stream for Amazon. Additionally, Walmart is expanding its online offerings to include upscale items like $146 Nike sunglasses and wine refrigerators costing more than $2,500 to attract customers who never set foot in a Walmart store. A new Product Content Collection System will facilitate vendors sending their product catalogs to Walmart, and the product information will then be available online. Walmart’s commitment to e-commerce is not designed to replicate Amazon’s business model. Instead, CEO Doug McMillon is crafting a strategy that gives consumers the best of both worlds—what is called an omnichannel approach to retailing. Walmart’s management believes the company’s advantage is that it is not a pure-play e-commerce retailer and that customers want some real interaction with physical stores as well as digital. Walmart will sell vigorously through the web and also in its physical stores, retaining its hallmark everyday low prices and wide product assortment in both channels and using its large network of stores as distribution points. Walmart will closely integrate online shopping and fulfillment with its physical stores so that customers can shop however they want, whether it’s ordering on their mobile phones for home delivery, through in-store pickup, or by wandering down the aisles of a Walmart superstore. Walmart is aiming to be the world’s biggest omnichannel retailer. Amazon is working on expanding its selection of goods to be as exhaustive as Walmart’s. Amazon has allowed third-party sellers to sell goods through its website for a number of years, and it has dramatically expanded product selection via acquisitions such as its 2009 purchase of online shoe shopping site Zappos.com to give the company an edge in footwear. Amazon has been building its grocery offerings, with Amazon Prime, Prime Now, Prime Pantry, and Amazon Fresh offering delivery times as short as an hour in some cases. It looks like Amazon is trying to innovate in physical retail store sales as well as online. Amazon has opened retail bookstores in Seattle, Chicago, San Diego, and other U.S. locations featuring Amazon electronic devices as well as books. It is thinking about moving into the grocery business as well as retail stores for furniture and appliances. These are retail experiences that lend themselves less easily to online purchasing because customers like to see and feel these types of goods in person. Amazon set up a physical grocery store in downtown Seattle called Amazon Go that is designed around an app that is able to place the items customers buy in a digital shopping cart so they can leave the store without waiting in a checkout line. The system automatically charges the credit card linked to the customer’s Amazon account and even knows when that person puts something back. Amazon continues to build more fulfillment centers closer to urban centers and expand its same-day delivery services, and it has a supply chain optimized for online commerce that Walmart just can’t match. It now has more than 100 warehouses from which to package and ship goods. Warehouses speed up Amazon’s shipping, encouraging users to shop more at Amazon, and the cost of these centers as a portion of Amazon’s operations is decreasing. Amazon is building up its own delivery operation to compete with UPS, FedEx, and the U.S. Postal Service by offering better delivery and lower costs for both its own customers and possibly those of other retailers. Both Amazon and Walmart are experimenting with drones to accelerate fulfillment and delivery. But Walmart has thousands of stores, one in almost every neighborhood, which Amazon won’t ever be able to replicate. The winner of this epic struggle will be the company that leverages its advantage better. Walmart’s technology initiative looks promising, but it still has work to do before its local stores are anything more than local stores. Can Walmart successfully move to an omnichannel strategy? Can Amazon’s business model work for physical retail store sales? Which giant will dominate future retailing?
CASE 1 QUESTIONS:
1. Analyze Walmart and Amazon using the Porter’s competitive forces.
2. Compare Walmart and Amazon’s business models and business strategies. Explain your answer?
3. What role does information technology play in each of these businesses? How is it helping them refine their business strategies?
4. Which company will dominate retailing? Explain your answer.
In: Operations Management
Define each word:
1. Tax-exempt bond.
2. General obligation bond.
3. Revenue bond.
4. Industrial development bond.
5. Tax anticipation note.
6. Equivalent taxable yield.
In: Finance