Week 4 EOC: Chapter 5 Quiz Question 2

a. Did the change in Cash reflect a Source or a Use of funds? What was the amount of that change?

b. Did the change in Net Receivables reflect a Source or a Use of funds? What was the amount of that change?

c. Did the change in Notes Payable reflect a Source or a Use of funds? What was the amount of that change?

d. Did the change in Retained Earnings reflect a Source or a Use of funds? What was the amount of that change?

e. What was the total amount of Sources and Uses of Funds?

Answers: 

a.  The Change in Cash reflected an increase of 14000 and was a Use.

Sources and Uses- inflows and outflows of money affecting the cash position.

b.  the change in Net Receivables reflected an increase of 30,000 and is a Use.

Net Receivables- Something that has been subtracted out. Are those monies owned to the business after subtracting any amounts that may not be collectible.

c.  The change in Notes Payable reflected a decrease of 44,000 and was a use. 

Notes Payable- Is classified as a current liabilities, are defined as those obligations of the business that will be repaid within a year.

d.  The change in Retained Earnings reflect a increase of 104,000 and was a source.

Retained Earnings- The accumulated amount of profits over the life of the business that have not been distributed as dividends.

e.    The total amount of Sources and Uses of funds was 743,000

Week 4 EOC: Chapter 5 Quiz Question 2

Week 4 EOC: Chapter 4 Quiz Question 3

a. Compare Rachel’s Cash % with the chain’s %.  Is it higher or lower?  What might this mean?

b. Compare Rachel’s Inventories % with the chain’s %.  Is it higher or lower?  What might this mean?

c. Compare Rachel’s Accounts Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

d. Compare Rachel’s Notes Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

Answers:

a. When comparing Rachel's Cash % with the chain's %, Rachel was 12.2% higher than the chain's %. This means that Rachel's cash/debit card transactions were coming in at a higher volume than the chain. "The term cash refers to the cash held in cash banks (for example, those used by cashiers in a restaurant), money held in checking or savings accounts, electronic fund transfers from payment card companies (such as MasterCard, American Express, Visa, and the like), and certificates of deposit (CDs), which are financial instruments with a fixed term and interest rate" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. Ch 4, Pg. 122. VitalSource Bookshelf Online).

b. When comparing Rachel's Inventories % with the chain's %, Rachel was 10.1% higher than the chain's %. This means that Rachel's value of food and beverages was higher, as well as supplies for the business. 

c. When comparing Rachel's Accounts Payable % with the chain's %, Rachel was 33.7% higher than the chain's %. This means that Rachel has a high percentage of obligations of business that will be repaid within a year. Including (notes payable, income taxes payable, and accounts payable). "The most important sub-classifications of current liabilities include notes payable, income taxes payable, and accounts payable. In the hospitality industry, current liabilities typically consist of payables resulting from the purchase of food, beverages, products, services, and labor. Current period payments utilized for the reduction of long-term debt are also considered a current liability" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. Ch 4, Pg. 127. VitalSource Bookshelf Online).

d. When comparing Rachel's Notes Payable % with the chain's %, Rachel was 8.8% higher than the chain's %. This means that Rachel had a high amount of promissory notes that had been issued by the company. "However, there are a variety of important reasons why they too must be able to read and analyze their own balance sheets to determine items such as the current financial balances of cash, accounts receivable, inventories, and accounts payable, and other accounts that have a direct impact on operations" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. Ch 4, Pg. 117. VitalSource Bookshelf Online).

Week 3 EOC: Best Resaturant Experience

The best restaurant experience I have ever had is at Casa de Amour in Las Vegas, NV. They feature great Italian food with the essence of old school Vegas as the décor. You can find pictures on the wall of the Las Vegas strip during the mob times and speaking of the mob, Case de Amour was the preferred favorite for all of the high rollers and mobsters. "Assume that a hospitality business was created to sell products and services to customers. To do so, it bought raw ingredients; hired staff; purchased land, building, and equipment; created products or services and ultimately sold these to its customers or guests" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.Ch2, pg. 33). What I think makes this my best restaurant experience is the live music and service. The live band has been performing at the restaurant for a number of years so their chemistry gives off a great vibe oh and not to mention they do take song request. They do covers of artist like Frank Sinatra and Tony Bennett which really gets you into the mood of this Italian restaurant. “Hospitality can be defined as the friendly and charitable reception and entertainment of guests or strangers” (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.Ch1, pg. 7). Since Casa de Amour has history, exquisitely prepared authentic Italian food, and a wine list that takes you around the world. In other words, this is not a cheap restaurant, average tab for two with one drink each is about $85-$100 which also comes with waiters that are knowledgeable about the establishment, product, and treat you like family (if you’re a repeat like me). My favorite waiter is the hospitality manager, “hospitality managers use the information you have already learned, new information (that you will learn) related specifically to the hospitality industry, and their own personal skills to analyze their businesses using managerial accounting techniques for the hospitality industry” (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online. Ch1, pg.22). Because of his skills and the greatness of this restaurant it its truly a place that never lets me down.

Week 2 EOC: Chapter 2 Question 4

a. Even though both methods ended with a net profit, Laura's Cash Accounting method ended with a Net Loss of ($7,850). "Those businesses that routinely generate cash in excess of their immediate needs for it are said to have a “positive cash flow.”. That is, more cash is flowing into the business than is being removed from it. Those businesses that do not generate enough cash to support their operations are said to have a “negative cash flow." Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008, pg.143. VitalSource Bookshelf Online.

b. Laura's Cash Accounting method shows the most accurate amount of money on hand to pay bills.

c. Lisa's Accrual Accounting accurately shows the revenues generated regardless of when they were received.

d. Laura's Cash Accounting most accurately shows the expenses incurred regardless of when they were paid. "While many in business feel that cash inflows from interest or dividends would be better considered as investing or financing activities, the FASB classifies them as operating activities (which means you must also!)." Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008, pg.157. VitalSource Bookshelf Online.

e. Lisa's Accrual Accounting method most accurately shows actural cash inflows and outflows.

f. Lisa's Accural Accounting method shows the most accurate reflection of their resturant's true profitability. "The accrual system instructs accountants to record expenses when they are incurred regardless of when they are paid". Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008, pg.49. VitalSource Bookshelf Online.

Week 1 EOC: Chapter 1, Question 3

a. Is it legal?

Yes this is legal but also unethical she knew about the late delivery issue and the maples should have been given to the company not used for a party. "Sometimes it may not be clear whether an actual course of action is illegal or simply wrong. Put another way, an activity (including an accounting activity) may be legal, but still the wrong thing to do" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.)" If there are no company policies forbidding the acceptance of "gifts", then it is probably legal to take the hot dogs home.

b. Does it hurt anyone?

No it did not the hot dogs were free and the company will still receive their delivery weather it is late or not. The two cases of hot dogs would benefit laurine because she would be using them for her personal barbecue. These cases technically are the property of the business, not the manager. The cost of these cases will most likely be paid by her business through future price increases.

c. Am I being honest?

She was being totally dishonest. She could have told the company about the samples and they could have given them to their customers as a promotional event to generate business. She may not be able to professionally handle future problems with the supplier, especially if she feels that the supplier will "reward" her again for future mistakes.

d. Would I care if it happened to me?

Yes I would care because if my food purchaser was not including me with this type of information I would question her loyalty to my business. Even the smallest things can make or break the business, keeping cost low is a major factor.

 

e. Would I publicize my action?

No I would not, having a barbeque with friends is disrespectful. She probably would not want her boss to know.

f. What should be done with the two cases of hot dogs?

The two cases should have been given to the owner/company so they could use them to drive more customers to their business. The company could have created a promoation and maybe do some social media advertising to get the word out. 

Week 1 EOC: Chapter 1, Question 3

a. Is it legal?

Yes this is legal but also unethical she knew about the late delivery issue and the maples should have been given to the company not used for a party. "Sometimes it may not be clear whether an actual course of action is illegal or simply wrong. Put another way, an activity (including an accounting activity) may be legal, but still the wrong thing to do" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.)" If there are no company policies forbidding the acceptance of "gifts", then it is probably legal to take the hot dogs home.

b. Does it hurt anyone?

No it did not the hot dogs were free and the company will still receive their delivery weather it is late or not. The two cases of hot dogs would benefit laurine because she would be using them for her personal barbecue. These cases technically are the property of the business, not the manager. The cost of these cases will most likely be paid by her business through future price increases.

c. Am I being honest?

She was being totally dishonest. She could have told the company about the samples and they could have given them to their customers as a promotional event to generate business. She may not be able to professionally handle future problems with the supplier, especially if she feels that the supplier will "reward" her again for future mistakes.

d. Would I care if it happened to me?

Yes I would care because if my food purchaser was not including me with this type of information I would question her loyalty to my business. Even the smallest things can make or break the business, keeping cost low is a major factor.

 

e. Would I publicize my action?

No I would not, having a barbeque with friends is disrespectful. She probably would not want her boss to know.

f. What should be done with the two cases of hot dogs?

The two cases should have been given to the owner/company so they could use them to drive more customers to their business. The company could have created a promoation and maybe do some social media advertising to get the word out. 

Week 1 EOC: My Voice

My name is Avery Simone I am known as an innovative kawaii blogger with a passion for all things color. As an industry professional working in fashion content marketing developing content for my website and interacting with my readers is very important to the success of my career. I draw inspiration from fashion narratives that tell an artistic story with beautiful clothing. Taking risk with various textiles and fabrics comes natural to me which adds to my personal style, which is a combination of street chic and vintage accents. I embody dynamic versatility and have the most amazing styling capabilities which keeps everyone waiting to see what I will put together next. I am fully dedicated to my craft and consistently reading and learning new things to keep myself in high demand. My positive mindset and charismatic personality allows me to grasp opportunities and sets me apart from the rest. As a fashion business professional that is determined to impact the industry I also strive to inspire others to pursue their dreams and stay true to themselves.