open in the January‚ 2014 with 238 rooms opening 365 days‚ occupancy level of 75% and an average daily room rate of $168. To make a prediction of an existing hotel‚ appraiser need to look up demand and supply of local market and past financial statement in order to forecast future expenses and revenues accurately. In this case‚ because the Hilton Garden Inn is a proposed hotel so that more fieldwork are required for the precise prediction. To estimate expenses and revenues of a proposed hotel‚ the
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Chapter 5 LO1: Describe the objective of financial reporting and identify the qualitative characteristics‚ conventions‚ and ethical considerations of accounting information. The objective of financial reporting is: To provide financial information that is useful in making decisions in assessing; Cash flow prospects‚ Stewardship. * Cash flow prospects: the information needed to make judgments about the entity’s ability to generate cash flows. * Stewardship: the information about the company’s
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Financial Feasibility Monthly Income Statement Factors Calculations Results Potential Gross Income $2.30/sq ft * 201‚707 sq ft $463‚930.00 Leasable space 201‚707 sq ft Parking 400 * $145 $58‚000.00 Vacancy allowance: 15% 15%* ($463‚930+$58‚000) $ 78‚290.00 EGI: $463‚930-$69‚590 $443‚640.00 Operating expenses: 32% of EGI $257‚094*.32 $141‚965.00 Net operating income: $257‚094 - 82‚270 $301‚675.00 Assumptions Changes in Rent “Commercial real estate investors and occupiers
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Chapter 1 Financial Statements and Business Decisions EXERCISES E1–2 Req. 1 READ MORE STORE Balance Sheet As at December 31‚ 2008 |ASSETS | |LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | |Liabilities | | |Cash |$ 48‚900
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Warranty Policies: Estimate within GAAP and Ethical Decision Making By Michael Fetters & Peter Wilson‚ Babson College Warranty policies can be classified into two major categories; those that come with the product at no apparent additional cost (e.g. standard 3 year/36‚000 miles warranty that often accompanies the purchase of an automobile) and those purchased by a customer at an additional cost (e.g. purchasing an extended warranty for a newly purchased automobile to extend the repair coverage
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GAP Inc Table of Contents Abstract 4 Introduction: 5 Background of the company: 6 Objectives: 6 Mission and vision statement: 6 Industry analysis: 7 Porter’s Five Forces analysis: 8 Competition: 8 Treat of new entry: 8 Threat of substitutes: 9 Power of suppliers: 9 Power of buyers: 9 Environmental Analysis: 10 Social - Cultural: 10 Economic: 10 Legal/Political: 11 Technology: 11 Industry Structure: 12 Competitors: 12 Economics strategy adopted by Gap inc. to improve it’s
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2014 - CPA EXAM Quiz – Answers and Explanations [1] Net assets is an element of the financial statements of not-for-profit entities (NFPs). It A. Net assets equal the residual interest in the assets of an entity that remains after subtracting its liabilities. For a business enterprise‚ equity (the ownership interest) is the analogue of net assets. In an NFP‚ which has no ownership interest in the same sense as a business enterprise‚ the net assets element is divided into three classes based on
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A balance sheet is a financial statement that reports the assets‚ which are resources owned by a business‚ liabilities‚ and stockholders’ equity at a specific date. Examples of assets would be computers‚ delivery trucks‚ furniture‚ and buildings. A balance sheet has two categories: Assets‚ liabilities‚ and stockholders’ equity. Liabilities are the debts and obligations of a business. Liabilities represent c claims of creditors on the assets of business. Examples of liabilities would be notes
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reasonable even though it shows a drop from 2009 levels. Of an interest is the fact that over the same period Starbucks EPS have actually grown by up to 200% from 0.53 to 1.66. It is clear that investors do not expect any rapid growth in the company’s net income but rather more stable growth. Question 3 With regard to short-term liquidity it is clear that Starbuck’s is doing better than the industry where the current ratio averages out at
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2000. -The three different products that are offered appeal to many if not all of the needs of the stated target market. -Able to reduce the installation process from 5 days to 2 days. (pg.5) Weaknesses -The net income before taxes and interest has been constantly negative since 1996. The net income went from $-2.7 million to $-17.6 million by 2000. (pg. 14) -Centras expenses significantly increase from year to year and in 2000 SG&A made up about 67.7% of the total expenses. (pg.14) -The difference of
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