publicly traded company 3 customers 27% 74% revenue 2004 2005 2006 questions

Questions

Using Percentage-of-Completion and Completed Contract Methods Halsey Building Company signed a contract to build an office...

Using Percentage-of-Completion and Completed Contract Methods

Halsey Building Company signed a contract to build an office building for $40,000,000. The scheduled construction costs follow.

Year	Cost
2016	$9,000,000
2017	15,000,000
2018	6,000,000
Total	$30,000,000

The building is completed in 2018.
For each year, compute the revenue, expense, and gross profit reported for this construction project using each of the following methods.

a. Percentage-of-completion method

	2016	2017	2018
Revenue	Answer	Answer	Answer
Expense	Answer	Answer	Answer
Gross Profit	Answer	Answer	Answer

b. Completed contract method

	2016	2017	2018
Revenue	Answer	Answer	Answer
Expense	Answer	Answer	Answer
Gross Profit	Answer	Answer	Answer

In: Accounting

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000.

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

	2021		2022		2023
Cost incurred during the year	$	2,100,000	$	2,450,000	$	2,695,000
Estimated costs to complete as of year-end		4,900,000		2,450,000		0
Billings during the year		2,200,000		2,350,000		5,450,000
Cash collections during the year		1,900,000		2,300,000		5,800,000

Westgate recognizes revenue over time according to percentage of completion.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

	2021	2022	2023
REVENUE	$3,000,000
GROSS PROFIT (LOSS)

In: Accounting

Bensen Company began operations when it acquired $26,500 cash from the issue of common stock on...

Bensen Company began operations when it acquired $26,500 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,500 that had a $4,500 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,000 cash. Bensen uses straight-line depreciation:

	2018	2019	2020	2021	2022
revenue	$8,000	$8,500	$8,700	$7,500	$0

Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model.

In: Accounting

Profit = Revenue - Cost P(x) = R(x) - C(x) Given: R(x) = x^2 - 30x...

Profit = Revenue - Cost

P(x) = R(x) - C(x)

Given: R(x) = x^2 - 30x

Given: C(x) = 5x + 100

X is hundreds of items sold / P, R, C are in hundreds of dollars

(1) Determine the Initial Cost?

(2) Determine the maximum Profit and number of items required for that profit?

(3) Determine the maximum Revenue and number of items required for that revenue?

(4) Find the break even points, P(x) = 0. What do the values represent in relation to the business?

In: Math

Patton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2018, paying $1,410,375....

Patton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2018, paying $1,410,375. The bonds mature January 1, 2028; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity.

*USE T ACCOUNTS

On July 1, 2018, Patton Company should increase its Debt Investments account for the Scott Company bonds by?

For the year ended December 31, 2018, Patton Company should report interest revenue from the Scott Company bonds of?

In: Accounting

Business sensor technology provides a way for companies to learn about their customers, employees, and operations:...

Business sensor technology provides a way for companies to learn about their customers, employees, and operations: data captured from sensors can be used to improve engagement, Sales, productivity, safety, and much more. A PwC survey of Global business and IT executives found that 25% of automotive executives: 27% of energy, utilities, and mining executives, 30% of hospitality and leisure executives; 33% of industrial products executives; and 52% of retail and consumer executives say their companies are currently investing in business sensor technology.

Suppose these results were based on 500 business and IT executives in each of the five industries: Automotive, Energy, Utilities, and Mining; Hospitality and Leisure; industrial products; and Retail and consumer.

A) at the 0.05 level of significance is there evidence of a difference among the industries with respect to the proportion of executives that say their companies are currently investing in business sensor technology?

B) Compute the p-value and interpret its meaning.

C) If appropriate, use the Marascuilo procedure and a= 0.05 to determine which companies differ in their currently investing in business sensor technology.

* Solve manually

In: Statistics and Probability

The following data lists age (x, in years) and FICO credit score (y) for 15 random...

The following data lists age (x, in years) and FICO credit score (y) for 15 random credit card customers. At the 10% significance level, use Excel to test the claim that age and credit score are linearly related by specifying the slope estimate, p-value and final conclusion below. Do not round any intermediate calculations. Round your slope estimate answer to 2 decimal places. Round your p-value to 4 decimal places. Enter a "−" sign in front of any negative answer.

Slope estimate =

p-value =

Final conclusion:

The data does not support the claim that age and credit score are linearly related.

The data supports the claim that age and credit score are linearly related.

Age Credit Score

68 603

61 805

45 774

73 661

80 793

69 611

25 575

42 732

47 515

26 714

71 702

69 792

27 791

79 660

72 713

In: Statistics and Probability

1.Consider an ad valorem tax on a luxury good such as cigars. Suppose the current tax...

1.Consider an ad valorem tax on a luxury good such as cigars. Suppose the current tax rate is 75%. If the tax rate is increased to 100%, what will happen to government tax revenue?

Select one:

Government tax revenue will fall to zero

Government tax revenue will definitely decrease

Government tax revenue will likely decrease

Government tax revenue will likely increase

Government tax revenue will definitely increase

There is not enough information to tell

2.In Canada, income from capital gains receives special treatment. If the federal government eliminated the special treatment for income from capital gains:

Select one:

BC provincial government tax revenue would decrease

BC provincial government tax revenue would increase

BC provincial government tax revenue would be unaffected

There isn't enough information to tell

3.Consider the model of tax evasion that we learned in class, in which individuals may choose to underreport some amount of their income.

In this model, if government increases the penalties for tax evasion:

Select one:

Everyone will increase the amount of income that they underreport

Most (but not necessarily all) people will increase the amount of income that they underreport

Everyone will decrease the amount of income that they underreport

Most (but not necessarily all) people will decrease the amount of income that they underreport

There is not enough information to tell

In: Economics

Use the data given to develop a Statement of Cash flows for 2007 and calculate change...

Use the data given to develop a Statement of Cash flows for 2007 and calculate change in cash from 2006 in operating, investing and financing activities and reconcile to beginning and ending cash.

Income Statements
	(Thousands of Dollars)
	Katie's Construction			Peer
	2006	2007	Proj. 2008	Com. Size
Net Sales	81,950	83,875	101,488.75	100.00
Cost of goods sold	66,000	70,950	85,849.5	81.00
Gross Profit	15,950	12,925	15,639.25	19.00
	0	0	0
S & A Expenses	8,360	9,997.9	11,163.762	10.00
Depreciation	1,100	902	1,045	1.00
Operating Profit	6,490	2,025.1	3,430.488	8.00
	0	0	0
Interest Expense	775.5	1,322.2	1,125.3	1.00
Pre-Tax Profit	5,714.5	702.9	2,305.188	7.00
	0	0	0
Tax (34%)	1,942.93	238.986	783.764	2.38
After Tax profit	3,771.57	463.914	1,521.424	4.62
	0	0	0
Dividends	1,377.2	165	660
Retained Earnings	2,394.37	298.914	861.424

No. of Shares	1,450	1,450	1,450
Stock Price/Share	13	9

	Balance Sheets
	(Thousands of Dollars)
	Katie's Construction			Peer
	2006	2007	Proj. 2008	Com. Size
Cash	1,760	1,427.8	1,760	3.5
Accounts Receivable	8,140	13,200	11,550	28
Inventory	14,609.1	20,900	15,381.3	47
Total Current Assets	24,509.1	35,527.8	28,691.3	78.5
	0	0	0
Net Fixed Assets	6,832.1	7,156.6	8,760.4	21.5
Total Assets	31,341.2	42,684.4	37,451.7	100
	0	0	0
Accounts Payable	4,620	8,800	6,600	15
Notes Payable	2,256.1	8,250	4,290	9
Accruals	2,255	3,242.8	3,567.08	7.5
Total Current Liabilities	9,131.1	20,292.8	14,457.08	31.5
	0	0	0
Long Term Debt	5,380.1	5,262.4	5,148.704	19
Total Liabilities	14,511.2	25,555.2	19,605.784	50.5
	0	0	0
Common Equity	16,830	17,129.2	17,845.916	49.5
Total Liabilities & Equity	31,341.2	42,684.4	37,451.7	100

In: Accounting

In about 300 – 400 words, write an essay analyzing the below case study using the SWOT framework.

Wendy’s International, Inc.

Wendy’s Old Fashioned Hamburgers was considered the third largest fast-food hamburger business in the world, although it reported higher revenues in 2002 than did Burger King. The company as a whole generated $2.73 billion in revenues in 2002, up 14.2 percent from the previous year. With headquarters in Dublin, Ohio, the corporation operated over 9,000 restaurants in 33 countries worldwide.

General menu items were similar to those of McDonald’s and Burger King --- hamburgers, chicken sandwiches, and fries---- but Wendy’s also offered several unique products such as Frostys and Spicy Chicken Sandwiches, as well as many healthy alternatives like salads, baked potatoes and even chili. One very important innovation contributed by Wendy’s was a special value menu that consisted of about 10 items that could be purchased for 99 cents. Since its initiation in Wendy’s stores, the value menu had also been implemented in McDonald’s and Burger King’s restaurants in order to compete with Wendy’s. All fast-food hamburger chains, were now expected to meet new consumer health expectations without compromising the menu items on which the companies were founded. Following suit, soon Burger King’s menu also offered a few items that set it apart from other fast-food restaurants, thereby offering customers a varied menu and posing a serious threat to Wendy’s.

Founded in 1969 in Ohio by David Thomas, Wendy’s Old Fashioned Hamburgers was incorporated and in 1976 had its first public offering of 1 million shares at dollar 28 per share. By 1981 the company had been listed on the New York Stock Exchange and had built its 2,000th restaurant. Unlike a few of its competitors, Wendy’s faced difficulties with international expansion. Despite these failures, the corporation had grown by acquiring several smaller companies such as Tim Horton’s and Baja Fresh Mexican Grill.

Wendy’s, early on sought to distinguish itself in a rapidly growing industry by providing its customers with a unique fast-food experience. However, several of its unique features were embedded with both pitfalls and advantages. The company’s Super Value Menu was definitely one of its strongest asset, although the concept had been picked up by other major companies. Also, in 2002, most fast food chains were desperately slashing prices in a bid to go increasingly lower. However, Wendy’s chose that year as a time to focus on product quality and product expansion by offering its Garden Sensations, a new selection of fresh, healthy salads. One weak point in Wendy’s business plan was the lack of an easily recognizable product comparable to McDonald’s Big Mac or Burger King’s Whopper.

Unlike McDonald’s and virtually every other burger chain in the world, Wendy’s overlooked the shift in consumer preferences from indoor dining to drive-through windows at its restaurants. It did not respond well to the above mentioned shift in consumer preferences which soon started looming over as threats. In 1975, Burger King began to install and operate drive-through windows at its restaurants. Now customers who were busy with family, jobs, and children could buy a quality meal in a hurry without ever leaving the car. However, Wendy’s at that point of time in selecting potential acquisition targets, completely overlooked the concept.

As Wendy’s moved into the future without founder Dave Thomas, who passed away in 2002, it planned to add between 2,000 and 4,000 new Wendy’s locations in the next decade and to focus its international expansion in Latin America. However, the company’s chief executive officer and chairman, Jack Schuessler, stated that the company planned to increasingly use acquisitions of smaller brands and joint ventures as the primary driver of future growth. In selecting potential acquisition targets, Wendy’s was avoiding concepts that directly competed with core Wendy’s offerings and looking to the fast casual segment and to concepts that involved offering high quality food without table service.

Adapted for purely academic purpose: Marino L and Jackson K.B. ; McDonald’s : Polishing the Golden Arches; (pp. C-213 - C-223) ; Thompson, A.A.; et.al.; 2005; Crafting and Executing Strategy; McGraw-Hill, New York.

Answer Notes:

Students may begin by creating a grid to identify the SWOT components as Strengths, Weaknesses, Opportunities and Threats to construct the analysis text.

Students are required to identify 3 strengths, 3 weaknesses, 2 opportunities, and 2 threats. Then to write an analytical text for the case study .

Students are required to provide definitions for each SWOT factor by referring to different relevant external resources

In: Economics