Reference no: EM131814269
Problem: Decision-Making Across the Organization
Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range on March 1, 2017, by investing $25,000 of their cash savings in the business. A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf clubs. The Ramon's leased five acres of land at a cost of $1,000 per month and paid the first month's rent. During the first month, advertising costs totaled $750, of which $100 was unpaid at March 31, and $500 was paid to members of the high-school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March 15, Anya and Nick withdrew a total of $ 1,000 in cash for personal living expenses. A $120 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18, 900. Anya and Nick thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6, 100 to net income of $2, 480.
Instructions: With the class divided into groups, answer the following.
a. How could the Ramon's have concluded that the business operated at a loss of $6, 100? Was this a valid basis on which to determine net income?
b. How could the Ramon's have concluded that the business operated at a net income of $2 480? Was this a valid basis on which to determine net income?
c. Without preparing an income statement, determine the actual net income for March
d. What was the revenue recognized in March?
Calculate the amount of capital gain or capital loss
: Gain from tha sale of a business computer $4,800; Loss from the sale of a personal use auto $1,200; Long-Term loss from the sale of land held for investment.
|
How does the epidemiologic triad apply to health issues
: How does the epidemiologic triad apply to health issues we see in the hospital? What are some common diagnoses in the acute care setting?
|
Faf company purchased 75% interest in fasb company
: FAF Company purchased 75% interest in FASB Company, Beta Company purchased 40% interest in AAA Company
|
What would you do or say your employee
: What would you do or say your employee (the woman), to your entire team, and/or to the client to improve the situation?
|
What was the revenue recognized in march
: Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range on March 1, 2017, by investing $25,000 of their cash savings in the business.
|
Caluculate the net present value (npv) for the proposed proj
: Calculate the Net Present Value (NPV) for the proposed project, Compute the capital allowance qualified for the building in each of three years
|
Write a research paper on the enron scandal
: Write a research paper on the Enron Scandal. Include what led up to the ethical dilemma, the stakeholders impacted by the violation.
|
Discuss the foundation or the basic principles and values
: Discuss the foundation or the basic principles and values on which your worldview of leadership is formulated.
|
Determine the value of ending inventory
: Determine the value of ending inventory if the sales value at splitoff method is used for product costing
|