Under the accrual basis accounting, revenues and expenses are recognized by the following principles:

• Revenue recognition: Revenue is recognized when both of the following conditions are met: Revenue is earned and Revenue is realized or realizable.
• Expense recognition: Expense is recognized in the period in which related revenue is recognized (this is also known as the Matching Principle).

Respond to the following in a minimum of 175 words:

• Discuss when the requirements of the revenue recognition principle are usually met. Give an example.
• Discuss when the requirements of the expense recognition principle are usually met. Give an example.

2.

A

Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 185,000 dollars today. During year 1, the project is expected to have relevant revenue of 126,000 dollars, relevant costs of 33,000 dollars, and relevant depreciation of 21,000 dollars. Gomi Waste Disposal would need to borrow 185,000 dollars today to pay for the equipment and would need to make an interest payment of 5,000 dollars to the bank in 1 year. Relevant net income for the project in year 1 is expected to be 45,842 dollars. What is the tax rate expected to be in year 1? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

B

Fairfax Pizza is evaluating a project that would require an initial investment in equipment of 400,000 dollars and that is expected to last for 8 years. MACRS depreciation would be used where the depreciation rates in years 1, 2, 3, and 4 are 45 percent, 31 percent, 17 percent, and 7 percent, respectively. For each year of the project, Fairfax Pizza expects relevant, incremental annual revenue associated with the project to be 700,000 dollars and relevant, incremental annual costs associated with the project to be 608,000 dollars. The tax rate is 50 percent. What is (X plus Y) if X is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and Y is the relevant OCF associated with the project expected in year 4 of the project?

C

Based on the following information, what is the relevant operating cash flow (OCF) associated with the project expected to be in year 3? The project would require an initial investment in equipment of 660,000 dollars that would be depreciated using MACRS where the depreciation rates in years 1, 2, 3, and 4 are 40 percent, 23 percent, 23 percent, and 14 percent, respectively. At the end of the project in 3 years, the equipment would be sold for an expected after-tax cash flow of 15,300 dollars. In year 3 of the project, relevant revenue associated with the project would be 417,400 dollars and relevant costs associated with the project would be 291,200 dollars. The tax rate is 25 percent.

D.

What is the expected after-tax cash flow from selling a piece of equipment if Red Royal Entertainment purchases the equipment today for 149,000 dollars, the tax rate is 40 percent, the equipment will be sold in 3 years for 74,000 dollars, and the equipment will be depreciated to 13,000 dollars over 17 years using straight-line depreciation?

E.

Platinum Water Health is considering a project that would last for 3 years and have a cost of capital of 12.47 percent. The relevant level of net working capital for the project is expected to be 17,000 dollars immediately (at year 0); 3,000 dollars in 1 year; 27,000 dollars in 2 years; and 0 dollars in 3 years. Relevant expected operating cash flows and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. What is the net present value of this project?

1) Paying debt principal with cash:

a) reduces net worth b) increases net worth c) doubles net worth d) has no impact on net worth e) None of the choices listed

2) If your starting net worth is $20,000, how much will you be worth after the following transactions: earn salaries of $3,000, pay living expenses of $2,000, borrow $5,000 and pay interest of $300? a) $20,700 b) $15,700 c) $28,000 d) $23,700 e) None of the choices listed

3) Paying cash for entertainment: a) involves two entries to the income statement b) involves an entry to the balance sheet and an entry to the income statement c) involves two entries to the balance sheet d) involves two entries to the balance sheet and one entry to the income statement e) None of the choices listed

4) Which of the following has an impact only on the balance sheet? a) Reducing the principal portion of a car loan b) Paying the interest portion of a car loan c) Depositing interest received on savings d) Paying insurance expense e) None of the choices listed

5) Which of the following forms of organizations has only one owner? a) Corporation b) Proprietorship c) Partnership d) Co-operative e) None of the choices listed

6) When operating as a proprietary business, which of the following is true? a) All debt in the business may or may not be the responsibility of the owner which will depend on accounting policies b) All the business debt is considered as the owners debt c) All the business debt is not the responsibility of the owner because they are separate entities d) It is common practice to keep the business and personal records together because the owner and the business are considered as one e) None of the choices listed

7) When an owner of a proprietary business withdraws cash from the business for personal use, how would the action impact the balance of cash and owner’s equity? a) Decrease cash, decrease owner’s equity b) Decrease cash, no change to owner’s equity c) Decrease cash, increase owner’s equity d) Increase cash, decrease owner’s equity e) None of the choices listed

8) A business pays for August travel expenses using a credit card that is due for payment in September. Which of the following is correct? a) In August, increase travel expense, increase accounts payable b) In August, decrease travel expense, decrease accounts payable c) In September, increase travel expense, increase accounts payable d) In September, decrease travel expense, decrease accounts payable e) None of the choices listed

9) Which of the following would you not find on the financial statements of a business? a) Net Worth b) Cash c) Property, Plant and Equipment d) Owner's Equity e) None of the choices listed

10) Examples of assets include: a) cash, prepaid expenses, unearned revenue b) cash, accounts receivable, salaries expense c) cash, accounts receivable, unearned revenue, revenue d) cash, accounts receivable, office supplies, accumulated depreciation e) None of the choices listed

Revenue represents amounts earned by an organization: that is, actual or expected cash inflows due to the organization’s major business. In the case of health care, revenue is mostly earned by rendering services to patients. Revenue flows into the organization is sometimes referred to as the revenue stream.

Step 1

·        Review the following key terms:

o   Discounted Fee-for-Service

o   Fee-for-Service

o   Managed Care

o   Medicaid Program

o   Medicare Program

o   Payer Mix

o   Revenue

Step 2

·        Review Chapter 4

·        Review PowerPoint

·        Complete Assignment Exercise 4–2: Revenue Sources and Grouping Revenue   (Found in the back of your textbook pp 463.)

groups 4

provide a  3-4 paragraph answer for the following questions

1-What are 4 key things you learned about the topic from reading their paper?

2-How does the topic relate to you and your current or past job?

3-Critique the paper in terms of the organization and quality.

Many companies are searching for ways that entice their employees to be more productive at work. These companies are hoping employees will want to come to the workplace rather than working remotely with new entertainment options offered. Not only do employers want employees working on-site to increase productivity, they want their employees to enjoy coming to the workplace. In the ever-changing corporate world, many companies have transitioned to remote working, which is a situation in which an employee works mainly from home and communicates with the company by email and telephone (Cambridge Dictionary, n.d.). While working remotely can decrease costs for companies and make life easier on employees, it can decrease productivity as well. Large corporations have provided many forms of in house entertainment that can keep employees happier and more productive at work. Types of entertainment options that are being provided by companies to increase productivity include employee recognition programs, relaxation and sport programs, complimentary food and snack stations that keep up with the latest food trends, company gyms, and a push on how these options can foster employee relationships.

            As companies strive to keep employees working on-site, they must also strive to show employees how appreciated they are. This can be accomplished through employee recognition programs. These programs can show that the employer values the work put in and thus they are rewarded with a special event just for them. Business dictionary defines these programs as one where management rewards employees for reaching specific goals or producing high quality results in the workplace. While employee recognition programs should strive to award the well-accomplished employees, it should also be catered to their interests. With many millennials entering the workforce, employees must focus on the aspect of catering to the needs of the employees when forming these events. Our textbook states that a downfall with millennials is that they have a “constant need for entertainment and stimulation” (Cascio, 2016, p. 131). While catering to the interests of the employees and especially millennials that have entered the workforce, these programs can be used as a way to ease their minds from the normal workday tasks and provide one day to step away from work and simply relax or a way to stimulate the brain in another situation. When employees are given the ability to relax and refresh, they come back more ready than ever to be productive in the workplace. The Grable Group explains, “Many Fortune 500 companies swear by employee recognition programs as they improve employee morale while recognizing the work of their valued employees” (Grable, 2017, p. 1). This article also strengthens our point that having an event that is catered to the interests of the employees is very important. An event that gives the perfect performance is a way to guarantee the employees will talk about the event for weeks to come. Why is it so important for the top employees to talk about the event they were given? When other employees hear of the event given to top-producing workers they will strive to be a top performer as well. Like our textbook states, millennials search for constant stimulation. Since millennials are part of the generation that is entering the workforce, having these events and making them a top hit with the employees will give the new workforce of millennials a push to be more productive and able to attend these events.

            High performance and a high rate of productivity are important qualities that employees can possess within a company. While employee recognition programs are a great way to show employees how much they are appreciated. Other forms of entertainment can be used to show them appreciation as well. Another form of entertainment that creates productive employees is relaxation and sport programs that combine both team work and relaxation methods. For example, programs such as Ping-Pong, corn hole, team sport days and even yoga can engage employees with one another in a different form of team work that they would not normally receive through office work. An engaged employee is considered to be emotionally attached to the organization, passionate about his or her work, and cares about the success of the organization. (Othman et al., 2018) Othman, Mahmud, Noranee and Noordin also explain that when employees are deeply engaged there is a heightened sense of positive and intense feelings. These positive feelings can provide for an extremely successful employee. Our textbook refers to happiness leading to productivity in the sense that if the “employees are happy, the customers are happy and the shareholders are happy” (Cascio, 2016, p. 256). This statement is great to show that the well being of the employee is at the best interest of the company and shareholders. Without a happy and productive workforce, the company can suffer. When employees are more engaged they are positive and ready to be as productive as possible. However, an engaged employee does not only have to be engaged within each other but also engaged within themselves which means being centered and relaxed. Positive and engaged employees are something that Google strives for daily. At the Google campus in Mountain View, California they provide “futuristic nap pods that allow employees to snooze in the middle of the work place inside of a pod designed to put them to sleep with soothing noises” (Barberio, 2017, p. 5). Google is a perfect example of a company that utilizes many forms of entertainment to make their employees feel appreciated and helps to increase their overall morale. Many companies began to follow Google and create other places in house where employees can be in tune with themselves and have the ability to work at their best. Another great company that helps their employees relax and engage within themselves is Twitter. Twitter provides free Cross fit and yoga classes for all employees in hopes to help them engage with one another and work towards a more productive environment (Barberio, 2017, p. 16).

            Another form of entertainment that can be used to push productivity and give employees the recognition they are searching for is complimentary food, drink and snack stations. This type of program has seen a rise in the past few years since Google began offering complimentary homegrown and organic food options across their 500,000-square foot Googleplex (Messieh, 2012, p.7). After Google showed their ability to award their employees with many different kinds of food, drinks and snacks, other companies followed this trend. Since food trends have become the social backbone in our society, companies that keep up with the latest food trends are more capable of keeping their employees happy, productive and most of all full. While these food trends can be a way to engage employees it’s also a way to show that the company keeps up with trends in and outside of the workplace. While these stations offer employees to satisfy their hunger, thirst or craving, it also supports a space to engage with one another and collaborate on new ideas. Providing spaces for collaboration increases productivity thus increasing the bottom line for the company. It seems Google has a system to their free food madness. A journal written by Hezekiah Olubusayo, Ibidunni Stephen and Olokundun Maxwell, “Incentives Packages and Employees’ Attitudes to Work…” states that “the success and the survival of an organization are determined by the way the workers are remunerated and rewarded” (Olubusayo et al., 2012). They continue to explain that the amount of incentives given to the employees determines the level of commitment the employees have to their work place. This statement reminds us of the common saying “Treat others how you wish to be treated”, in the sense that if a company wants the full potential and dedication of an employee to their company, the company must show full dedication back to the employee. Google shows this by offering not only food and drink stations but also the nap pods that we mentioned earlier. Another company that provides complimentary food stations to their employees is Vistaprint. San Gentile of Thrillest explains in his article “13 Companies with the best, most insane food perks you definitely don’t get”, that Vistaprint invites food trucks to come twice a month and everything they offer is complimentary to the employees (Gentile, 2014, p. 6). Keeping up with food latest food trends helps companies to remain in tune with the interests of employees as well as shows that the company truly searches to provide the best connection and experience for their staff.

            As we stated above, food is the social backbone of our society and sometimes we are guilty of eating too much of those crazy food trends. This is why many companies provide in house gyms, workout programs, workout games and more fun exercise programs to promote the health and wellness of their staff. Healthy employees are more productive employees. Weber of “The Wall Street Journal” explains that a study done in the Midwest “found that employees who participated in an employer sponsored health program increased their productivity by 4% during the subsequent year” (Weber, 2017, p. 2). Some of the top companies like Google and Microsoft provide on-site wellness classes and gyms. Before this became a trend and other companies caught on, they may have thought it was a waste of their money however as we have explained providing spaces like gyms can produce a more positive and productive employee. This brings us back to how our textbook states that a happy employee leads to happy customers and so on. A local company that we are all familiar with, FPL has built fitness centers at 58 of their locations. Their website also explains that employees have participated in “various targeted programs, including Mindful Eating, Mindfulness at Work, a relaxation training program, a high-risk drinking screening indicative and a weight-loss program” ("Nextera Energy Health & Well-being," n.d.). FPL as well as many other companies that we have mentioned previously, provides everything possible to create happy and healthy employees. Why is being healthy so important in the work environment should we ask? Stephen Miller, a writer for the “Society for Human Resource Management” explains, “ more than 90 percent of business leaders say that promoting wellness can affect employee productivity and performance” (Miller, 2015, p.1). This article also explains that the importance of good health is not only related to performance but also related to attitude. For example, if the front house manager doesn’t share this belief or the work environment doesn’t support healthy behaviors then that company will fail to see results even if the rest of the company supports healthy habits and a healthy lifestyle. Everyone in the company must be on board with the environment that the company is trying to achieve. A healthy environment is so important to one company, “Cliff Bar & Company”, out of Emeryville, California, that they have began to pay their employees for exercising for at least 2.5 hours a week. Kathleen Elkins of CNBC explains that the company has a program where “if you work nine hours a day for nine days, you get the tenth day, every other Friday, off” (Elkins, 2017, p. 2). Another option is to work “eight and half hours and work out for 30 minutes” (Elkins, 2017, p. 3). This is a massive push to increase healthy living in their company, which in turn will increase their bottom line. Within the same article, it is explained that many of the employees stated that when the company began this program many of the work staff was surprised to see that their brain was functioning better and they felt like they could achieve more on the job.

            While we have explained many forms of entertainment that can increase productivity in the workplace, the final and maybe most important aspect of entertainment in the workplace is how it can help foster and create new employee relationships. We have also explained that employee engagement is a very important part of the work environment and turning engaged employees into strong relationships is just as important. Companies have discovered many ways to give employees the opportunity to strengthen their relationships as well as foster older relationships through many forms of entertainment like the food and drink stations we have mentioned above. Another way that companies are trying to create employee relationships is through work outings instead of the normal Christmas parties at the office. Since the rise in sexual harassment cases, many companies are veering away from alcohol at parties, or parties all together. Instead, they are replacing these events with organized company outings. Lauren Holson of “The New York Times” explains, “ a growing favorite are parties at bowling alleys and escape rooms, events with a manageable size and a guest list” (Holson, 2017, p. 3). As much as companies gear towards creating meaningful relationships within the workplace through other forms of entertainment, they just cannot afford to give the annual crazy Christmas party any longer. This is the year of the #Metoo movement and many companies are guarding themselves from having to deal with anymore sexual harassment issues. The only way to avoid issues like this is to avoid serving alcohol and creating an environment which could but is not meant to condone sexual harassment issues. While some employees might love the yearly blacked out night of their company Christmas party, the HR department certainly does not. Lauren also explains in her article, after interviewing Ms. Maddick of PicsArt that even though Christmas parties of the past can no longer happen safely companies are still finding ways to “get away from the office and get to know one another,” as stated by Ms Maddick (Holson, 2017, p. 9). Fostering these relationships within a company can help the employees feel closer to the corporation and thus create a more engaged and dedicated employee like we mentioned previously. Through a survey done by Globoforce, they found that “having friends at work increases commitment to the company” they also explain that the more friends employees have at work, the more they are committed to the company (Globoforce, 2014, p. 5). A graph that we have attached to this paper shows the percentage of people who have made friends while at work. Creating these relationships and having the ability to foster them through employee outings and other entertainment options provided at the workplace create a space where productive employees can grow and succeed.

            To conclude, entertainment of many kinds such as employee recognition programs, relaxation and sport programs, complimentary food and snack stations, company gyms, and fostering employee relationships helps to establish an environment that is conducive for productive employees. The environment in which is provided for employees should be one where they are free to relax, engage with other employees and have time to work on their well being. Through the research we have found, employees need to feel engaged and appreciated or the company they work for will not reach their potential. We cannot mention enough that a happy employee is a “happy customer which leads to a happy shareholder” as our textbook states (Cascio, 2016, p. 256).

"This report is primarily intended to analyze and present the potential financial success and profitability of Zivago Private Limited, an online media portal which is proposed to be launched in the local market in Singapore. The content of the report mainly highlights the following points: A brief description of the services to be provided by the company, identification of the target consumer group, the proposed marketing and advertising strategies based on an overall market research covering the prominent global and local competitors and the potential revenue model that will be implemented following the same.

Zivago has been conceived to be a comprehensive online medial portal where viewers can watch their favourite commercial shows, movies, documentaries, live features covering a wide range of categories such as drama, comedy, suspense/myestery, sports, news and journalism and much more. Aside from the popular local shows and movies, the portal also contains various programmes from almost over 25 countries in different languages and substitles. Additionally, Zivago also features original shows in all these languages that are produced exclusively by Zivago and presenting popular actors/actresses from the local media insustry.

Based on a private and other government conducted market and consumer studies in Singapore, it has been estimated that more than half of the consumers in the media industry is increasingly preferring online videos and private streaming. In this regard, viewership is not only limited to only popular local shows but majorly include foreign ones as well. However, in this regard, only few portals have been able to access the international entertainment arena and although few have, they are not able to cater to the ethnically diversed population group in the country which includes native Chinese Singaporean, Malay, Bangaladeshi, Indian and various Middle Eastern. As an example, VIU an Starhubs predominantly feature some of the popular Japanese and Chinese drama based shows but not much services considering the diversed population group. The main impediments in this case are lack of penetration into the international media market and language barrier. Zivago is intended to address both the issues and in the process generate higher viewership.

Secondly, the studies indicate that the OTT viewership in Singapore has steadily increased among children and young adults and the most popular genres include drama, movies, sports, animation/cartoons and other entertainment and variety. In this context, Zivago specifically targets the children audiences and sports viewers by streaming various South Asian animation and cartoon shows and popular global sport events such as NFL,NBA,American Football etc. Such services are very much limited and expensive both by local and global competitors.

As internet and social media is gaining ever increasing prominence in Singapore, the company is looking to rely on digital marketing for marketing and promotional services. The studies reveal that Youtube, Facebook and Instagram users in Singapore are highest among the OTT viewers in Southeast Asia. Zivago mainly relies on online advertising and e-marketing through these social media and online platforms which features the most popular shows and promos and a brief description of the membership details. Zivago also conducts various promotional activities in local shopping malls and popular commercial centres across the city which will be featured at the official Facebook and Youtube page. A one minute promo of all the popular shows and movies will be displayed in the official Youtube page and Zivago online app which can be downloaded for free in both Playstore and IOS.

Zivago follows Subscription Revenue Model under E-commerce Revenue Model System. Unlike most other local and global counterparts including Zulu and Netflix, Zivago offers a free viewing of all its original shows for one week in the app as well in its Youtube and Facebook page, All the trailers and initial promos will also be available in app, Youtube and Facebook. The viewers can choose if they would like to continue watching further and subcribe.Under the subscription model, a free one month trial period is provided to potential viewers where they can watch unlimited shows (both original and local/global), movies and all other available contents. Following the expiration of the trial period, 3 subscription options will be provided based on monthly, 6 moths and yearly basis at reasonale pricing that are evidently less than some of the popular portals such as Netflix, VIU, HULU and Starhubs."

Based on the report, answer the question mentioned below:

The Strategy: From your channel description, do the following:

(i) Develop the programming strategies you used. Cite at least THREE (3) programming strategies and explain why you used them

(ii) Formulate your promotional strategy. How will you make your channel known?

Include at least THREE (3) traditional and new media strategies.
(iii) Evaluate the possible risks of such a service. Explain how you can effectively mitigate these risks.

"

This report is primarily intended to analyze and present the potential financial success and profitability of Zivago Private Limited, an online media portal which is proposed to be launched in the local market in Singapore. The content of the report mainly highlights the following points: A brief description of the services to be provided by the company, identification of the target consumer group, the proposed marketing and advertising strategies based on an overall market research covering the prominent global and local competitors and the potential revenue model that will be implemented following the same.

Zivago has been conceived to be a comprehensive online medial portal where viewers can watch their favourite commercial shows, movies, documentaries, live features covering a wide range of categories such as drama, comedy, suspense/myestery, sports, news and journalism and much more. Aside from the popular local shows and movies, the portal also contains various programmes from almost over 25 countries in different languages and substitles. Additionally, Zivago also features original shows in all these languages that are produced exclusively by Zivago and presenting popular actors/actresses from the local media insustry.

Based on a private and other government conducted market and consumer studies in Singapore, it has been estimated that more than half of the consumers in the media industry is increasingly preferring online videos and private streaming. In this regard, viewership is not only limited to only popular local shows but majorly include foreign ones as well. However, in this regard, only few portals have been able to access the international entertainment arena and although few have, they are not able to cater to the ethnically diversed population group in the country which includes native Chinese Singaporean, Malay, Bangaladeshi, Indian and various Middle Eastern. As an example, VIU an Starhubs predominantly feature some of the popular Japanese and Chinese drama based shows but not much services considering the diversed population group. The main impediments in this case are lack of penetration into the international media market and language barrier. Zivago is intended to address both the issues and in the process generate higher viewership.

Secondly, the studies indicate that the OTT viewership in Singapore has steadily increased among children and young adults and the most popular genres include drama, movies, sports, animation/cartoons and other entertainment and variety. In this context, Zivago specifically targets the children audiences and sports viewers by streaming various South Asian animation and cartoon shows and popular global sport events such as NFL,NBA,American Football etc. Such services are very much limited and expensive both by local and global competitors.

As internet and social media is gaining ever increasing prominence in Singapore, the company is looking to rely on digital marketing for marketing and promotional services. The studies reveal that Youtube, Facebook and Instagram users in Singapore are highest among the OTT viewers in Southeast Asia. Zivago mainly relies on online advertising and e-marketing through these social media and online platforms which features the most popular shows and promos and a brief description of the membership details. Zivago also conducts various promotional activities in local shopping malls and popular commercial centres across the city which will be featured at the official Facebook and Youtube page. A one minute promo of all the popular shows and movies will be displayed in the official Youtube page and Zivago online app which can be downloaded for free in both Playstore and IOS.

Zivago follows Subscription Revenue Model under E-commerce Revenue Model System. Unlike most other local and global counterparts including Zulu and Netflix, Zivago offers a free viewing of all its original shows for one week in the app as well in its Youtube and Facebook page, All the trailers and initial promos will also be available in app, Youtube and Facebook. The viewers can choose if they would like to continue watching further and subcribe.Under the subscription model, a free one month trial period is provided to potential viewers where they can watch unlimited shows (both original and local/global), movies and all other available contents. Following the expiration of the trial period, 3 subscription options will be provided based on monthly, 6 moths and yearly basis at reasonale pricing that are evidently less than some of the popular portals such as Netflix, VIU, HULU and Starhubs."

Based on the report, answer the question mentioned below:

The Strategy: From your channel description, do the following:

(i) Develop the programming strategies you used. Cite at least THREE (3) programming strategies and explain why you used them

(ii) Formulate your promotional strategy. How will you make your channel known?

Include at least THREE (3) traditional and new media strategies.
(iii) Evaluate the possible risks of such a service. Explain how you can effectively mitigate these risks.