Answer:
1. Prepare an income statement for Allstar for the past month.
The income statement is given below.
Sales $ 410,000
Commission Cost ($ 50,000)
Technology Cost ($ 75,000)
R/D Cost* ($ 200,000)
Selling expenses ($ 10,000)
Admin expenses ($ 35,000)
Net profit $ 40,000
* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).
2. Briefly explain why Allstar's income statement has no line for cost of goods sold.
As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.
Answer: The manager should exhibit all the traits except computer programming skills.
Explanation: A successful general manager or a manager that is striving to be successful will/should possess the following traits:
1. Attention to detail; this is a very important trait and could be the difference between keeping a client and losing one. This is because clients want to feel and be treated specially and uniquely. Therefore an attention to detail will help the manager ensure that each client is treated specifically and differently from the next client.
2. Follow through leadership: this trait is very important in order to maintain cohesion among the team members and subordinates.
3. People skills: this is a very important trait because it is very vital in person-to-person interactions, especially when interacting with hotel guests.
4. Effective delegation: one person cannot perform all the tasks in a hotel, therefore it falls on the general manager to be able to assign roles to individuals that are best suited to perform the tasks. This is a very important trait and will ensure that resources are properly utilized.
Computer programming skills is not a trait requires of a hotel general manager. This is because the role can be assigned to a computer programmer while the general manager faces other tasks that require his/her attention.
Answer:
the three of them could be held personally liable:
- I. John
- II. John's manager
- III. The CEO, who in this specific case we assume could have prevented the crime.
Explanation:
John committed forgery and possibly fraud by forging clients' signatures on documents held by the company. His boss ordered him to do so, so he is also responsible for John's actions. John can even try to put all the blame on his boss alleging that he was forced to forge the signatures. The CEO of the firm is also responsible because the forged documents had to serve someone's illegal purposes, and the CEO probably was the one that needed them or knew about what was going on and didn't do anything to stop it.
Pay discrepancies i believe
Let us go to the basic accounting equation: Assets = Liabilities + Shareholder's Equity. The equity multiplier is computed by dividing the total assets with the total shareholders' equity. We know the total assets as $85,3000. Using the formula for the equity multiplier, we can calculate the amount of the shareholders' equity. The given equity multiplier is 1.53. To calculate the shareholders' equity, we just have to divide the $85,300 (total assets) with 1.53 (equity multiplier). We can get the amount of $55,752. Using the accounting equation, we can compute <span>the amount of liabilities as $29,548. The formula to get the debt-equity ratio is dividing the total shareholder's equity by the liabilities. $55,752 divided by $29,548, we can get 1.89 as the debt-equity ratio.</span>
