Homework Answers
| Alterenative 1: Continue the lounge operation as is | Currency | $ | ||
| Room | Restaurent | Lounge | Total | |
| Revenue | 250,000.00 | 100,000.00 | 40,000.00 | 390,000.00 |
| Departmental Expense | 100,000.00 | 70,000.00 | 20,000.00 | 190,000.00 |
| Departmental Profit | 150,000.00 | 30,000.00 | 20,000.00 | 200,000.00 |
| Allocated Overhead | 100,000.00 | 25,000.00 | 30,000.00 | 155,000.00 |
| Pretax Income | 50,000.00 | 5,000.00 | -10,000.00 | 45,000.00 |
| Alterenative 2: Close the lounge and expand the Restaurent | ||||
| Room | Restaurent | Launge | Total | |
| Departmental Profit | 147,000.00 | 36,000.00 | 0 | 183,000.00 |
| (150000-2%*150000) | (30000+20%*30000) | |||
| Sale of Equipment | - | - | 500 | 500.00 |
| Allocated Overhead | 100,000.00 | 25,000.00 | 20,000.00 | 145,000.00 |
| Pretax Income | 47,000.00 | 11,000.00 | -19,500.00 | 38,500.00 |
| Alterenative 3: Lease the space to Philip Inc., a management company | ||||
| Room | Restaurent | Launge | Total | |
| Departmental Profit | 150,000.00 | 30,000.00 | - | 180,000.00 |
| Lease income(10% of $550000)/12 | - | - | 4,583.33 | 4,583.33 |
| Cost to convert i.e. depreciation(60000/5/12) | - | - | 1,000.00 | |
| Allocated Overhead | 100,000.00 | 25,000.00 | 25,000.00 | 150,000.00 |
| Pretax Income | 50,000.00 | 5,000.00 | -21,416.67 | 33,583.33 |
| Conclusion: Peter john Star should continue to operate the lounge as the pretax income amounting to $45,000/- is the highest in this alternative. |
Add Answer to:
Problem 22 is confused by the fully allocated financial Peter John Star, owner of The Big...
Peter John Star, owner of The Big Star Hotel, is confused by the fully allocated financial...
Peter John Star, owner of The Big Star Hotel, is confused by the fully allocated financial statements that suggest The Big Star Hotel's lounge is losing money. As he sees it there are three alternatives: 1. Continue the lounge operation as is. 2. Close the lounge and expand the restaurant. 3. Lease the space to Philip, Inc., a management company. The following table summarizes the Big Star Hotel's fully allocated monthly income statements. Revenues Rooms Restaurant Lounge Total $250,000 $100,000...
Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of...
Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash $ 44,000 Accounts receivable 500,000 Raw materials inventory 90,200 Finished goods inventory 444,000 Total current assets 1,078,200 Equipment 608,000 Accumulated depreciation (154,000 ) Equipment, net 454,000 Total assets $ 1,532,200 Liabilities and Equity Accounts payable $ 211,300 Short-term notes payable 16,000 Total current...
Problem 7-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of...
Problem 7-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets S 48,e00 438,750 87,980 383,760 958,410 616,000 158,000 458,800 S 1,416,410 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note...
Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of...
Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total...
Problem 22-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of...
Problem 22-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. 10 points eBook Print ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities ong-term note payable Total liabilities Common stock Retained earnings Total...
A COMPREHENSIVE ACCOU CYCLE PROBLEM On December 1, 2009, John and Patty Driver formed a corporation...
A COMPREHENSIVE ACCOU CYCLE PROBLEM On December 1, 2009, John and Patty Driver formed a corporation called Susquehanna Equip- ment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-it, an equipment rental company that was going out of business. The newly formed company uses the following accounts: Cash Income Taxes Payable Accounts Receivable Capital Stock Prepaid Rent Retained Earnings Unexpired Insurance Dividends Office Supplies Income Summary Rental Equipment...
The rest of the details: Gadgets, Inc. is incorporated and will begin operations on January 1, 2019. Its primary...
The rest of the details:
Gadgets, Inc. is incorporated and will begin operations on January
1, 2019. Its primary business is the manufacture and sale of
gadgets. Because cash resources are limited, the company
anticipates the need to have access to capital during the first
year of operations and seeks to establish a line of credit with a
local bank. The bank requires a complete operating and cash budget
and pro-forma financial statements for 2019 as part of the loan...
Blues Traveler Company sells electric razors. The company’s home office is in Princeton, New Jers...
Blues Traveler Company sells electric razors. The company’s home office is in Princeton, New Jersey. The company was founded in 2005 when John Popper invested $300,000 for 30,000 shares and Chan Kinchla invested $200,000 for 20,000 shares of common stock. The only other financing activities relate to a $500,000 bank loan from 1st National Bank that accrues interest at six percent per year payable on January 1 each year that has an unpaid balance of $400,000. The loan is due...
mework i Hel Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3...
mework i Hel Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders'...
Problem 7-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets S 48,e00 438,750 87,980 383,760 958,410 616,000 158,000 458,800 S 1,416,410 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note...
Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total...
Problem 22-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. 10 points eBook Print ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities ong-term note payable Total liabilities Common stock Retained earnings Total...
A COMPREHENSIVE ACCOU CYCLE PROBLEM On December 1, 2009, John and Patty Driver formed a corporation called Susquehanna Equip- ment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-it, an equipment rental company that was going out of business. The newly formed company uses the following accounts: Cash Income Taxes Payable Accounts Receivable Capital Stock Prepaid Rent Retained Earnings Unexpired Insurance Dividends Office Supplies Income Summary Rental Equipment...
The rest of the details:
Gadgets, Inc. is incorporated and will begin operations on January
1, 2019. Its primary business is the manufacture and sale of
gadgets. Because cash resources are limited, the company
anticipates the need to have access to capital during the first
year of operations and seeks to establish a line of credit with a
local bank. The bank requires a complete operating and cash budget
and pro-forma financial statements for 2019 as part of the loan...
mework i Hel Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders'...
Most questions answered within 3 hours.
-
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 1 minute from now -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 13 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 7 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 20 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 29 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 28 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 31 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 31 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 36 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 51 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 52 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 1 hour ago