Week 10 EOC: My Plans

Now that I have finished this accounting class I have developed an understanding for the importance of book keeping and accounting. This class couldn’t have come at a more perfect time for me because I have been trying to re brand myself and really zone in on what I want to contribute to the fashion industry. My website and company Haus of Unicorn got a great response during its first year in the market, we gained a following of over 1500 people in 12 different countries and gained wardrobe styling clients. Now that I have successfully completed this accounting class the direction I want to go in with my re branding is writing as a chronic fashion editor, designing chronic fashion, sell garments, wardrobe styling, and YouTube. Accounting has made me realize the importance of spending my money correctly to gain profit and grow the business. With my re branding I am focusing on marketing because that’s what I am studying in school, I believe in my skills, the message I am delivering and the impact I will have on the industry. I will be creating and defining the fashion style in the marijuana business which will impact the mass market of the fashion industry. My first step in my re branding is redesigning my logo, deleting and adding new chronic fashion content, set a date to relaunch Haus of Unicorn, and stay focus on my goal. 

EOC Week 9: Acquire the restaurant?

1. These five important fixed costs will affect Dan's purchase decisions will be 
-Insurance 
-Property Tax
-Rent / Mortgage 
-Employee Salaries
-Utilities 

2. Loralei's important variable costs that would be directly affect the operating decisions would be. 
-Direct Materials
-Commissions
-Production Supplies 
-Credit Card Fees 
-Food Cost 

3. In my opinion I think if Dan and Loralei purchase the restaurant Loralei variable cost will be most important to focus on. If they work on lowering the variable cost they will make more profit from each table or customer. As their sales volume increases the cost of the sale will increase as well, "In the restaurant business, each steak you sell requires that you purchase a steak to replace it. The more steaks you sell, the higher your own steak cost will become because your steak cost will increase when your steak sales increase and decrease when your steak sales decrease" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes]). Since the fixed cost will always be constant within the month to month business operations it's best to get your variable cost on a steady pace just like the fixed cost. "A fixed cost is one that remains constant despite increases or decreases in sales volume. Other typical examples of fixed costs include payments for insurance policies, property taxes, and management salaries" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes]). The Restaurant that Dan and Loralei are acquiring about is at down$1,302,000 in revenue difference from last year at $1,400,000 and this year $98,000. "In some cases, the amount hospitality managers must pay for an expense will not be fixed but will vary based on the success of their business. Good managers seek to decrease their fixed costs to their lowest practical levels while still satisfying the needs of the business and its customers. Those same good managers, however, know that increases in variable costs are usually very good!" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes]). Its clear from this information that the problem is the amount of customers coming into the restaurant and generating revenue for the business.

Week 8 EOC: Chapter 8 Quiz, Question 4

a. What were the total revenues in October 2009 and October 2010?

b. What was the GOP in dollars in October 2009 and October 2010?

c. What was the percentage of GOP to total revenues in October 2009 and October 2010?

d. What was the flow-through percentage achieved by Santi’s hotel? What is your assessment of that percentage?

Answers:

 

a.    The total revenues in October 2009 was 545,000 and October 2010 was 583,000. 

b.  The GOP in October 2009 was $162,000 and in October 2010 was 184,550

c.    The GOP in total revenues % in October 2009 was 29.72 and in 2010 was 31.66%

d.  The flow-through % was 59.34%. In my opinion that percentage, is slightly high which is great for the business. "Flow-through is a measure of the ability of a hotel to convert increased revenue dollars to increased gross operating profit dollars" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes]). This number shows the movement of products and how well the business can generate revenue for the business. "Gross operating profit (GOP) is, in effect, total hotel revenue less those expenses that are considered directly controllable by management. Flow-through was created by managerial accountants to measure the ability of a hotel to convert increases in revenue directly to increases in GOP" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes]). With the flow-through percentage it its important to remember that these numbers help the mangers with the business, this number 59.34% shows, "flow-through is computed to help managers identify the impact of increases in revenue on profitability. When it is high (over 50%), it usually reflects efficiency on the part of management in converting additional revenues into additional profits" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes]).

Week 7 EOC: Trump and Small Businesses

Depending on your type of business and how well you have been doing in the market will you feel a difference when trump assumes office next year . From what I have read and heard from Trump is that he is about economics, "For each 1 percent in added GDP growth, the economy adds 1.2 million jobs. Increasing growth by 1.5 percent would result in 18 million jobs (1.5 million times 1.2 million, multiplied by 10 years) above the projected current law job figures of 7 million, producing a total of 25 million new jobs for the American economy" (Trump, Donald J. "Economy." DonaldJTrump For President. N.p., n.d. Web. 21 Nov. 2016.) Even though he stands in a good position he has publicly stated a lot of horrible things that don't line up with the issues he's pro on . This economic tax break he's always talking about is not for the poor or middle class, it's for the rich and ultra rich. Trump speaks to the people that he understands and lives life alike, he only understands his people and has no interest of others. "More concretely, Trump bragged that the plan would deliver large benefits for middle-income taxpayers and that, "by contrast, someone earning $5 million will receive virtually no change in their tax bill at all." (Https://www.facebook.com/jimtank. "Donald Trump’s Tax Plan Now Favors the Ultra-rich Even More." Washington Post. N.p., 19 Sept. 1970. Web. 21 Nov. 2016.) From a personal stand point I consider myself below middle class but not poor, I have aspirations to make money from my fashion skills and knowledge. When Obama was president I felt like I could do anything because the president has my best interest, but now that trump is in office I feel as if I have to watch my back extra close because I'm not sure what my president will do to my future. “Laziness is a trait in blacks.” “Black guys counting my money! I hate it. The only kind of people I want counting my money are short guys that wear yarmulkes every day.” (Blay, Zeba. "12 Reasons Donald Trump Would Not Be Great For 'The Blacks'" The Huffington Post. N.p., 11 Mar. 2016. Web.). I think love, peace and unity are the things we need our leader to instill in the people of this nation, we the blacks are giving trump a chance we just hope he does the same for us.  

Week 6 EOC: Pot in the Work Place

There are a lot of different stereotypes about people who smoke marijuana. When it comes to a working environment people that use marijuana are looked down upon and most times get denied for employment. For a person that partakes in using marijuana recreationally or medically and has all of the correct documentation to legally use the flower will still be denied employment because of a drug test, even if it is decriminalized in their state. "Twenty-three states and the District of Columbia have decriminalized medical marijuana. These laws vary greatly in their criteria and implementation. In addition, some states, including Arizona, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada and New York, require accommodations for registered medical marijuana users. In those states, an employer cannot take an adverse action against an employee simply because of his or her participation in a recognized medical marijuana program" (Marijuana in the Workplace: A Hazy Issue for Employers. SHRM. N.p., 18 Sept. 2015. Web. 14 Nov. 2016). From my perspective I think I break all stereotypes of marijuana users in the workplace because of the way I look and I can pass a drug test. As a user you have to understand that the workplace does not care about your habit because you still have a take and pass a drug test. I myself understand this which is why I can stop smoking for however long and cleanse my body so I can pass a drug test because I do want the job. Other people don't care as much and fight for their rights as a medical marijuana patient.  

"For instance, if an employee tests positive for marijuana, the employer should ask the worker to verify that he or she is a participant in a recognized medical marijuana program. Then the employer conducts a further evaluation of the employment situation"(Marijuana in the Workplace: A Hazy Issue for Employers. SHRM. N.p., 18 Sept. 2015. Web. 14 Nov. 2016). Of course I am not saying you should under the influence of marijuana at work or even use it if you operate heavy machinery, but employers should look at the functions of the job and make sure the employee has the correct documentation to use when they are off the clock.  "It goes without saying that working under the influence of marijuana—or any intoxicant for that matter—is to be discouraged. But marijuana is known to stay in one’s system after its psychoactive effects wear off. Therefore, whether employers are able to penalize employees for engaging in state-sanctioned marijuana use, despite no indication of impaired work performance, is a difficult question to answer.  As with most marijuana-related issues, this is a state-by-state determination" (High Stakes: Marijuana in the Workplace - California Lawyer. California Lawyer. N.p., 28 July 2016. Web. 14 Nov. 2016). 

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