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This is case stydy assignment. It has three sections. A,B and Cassignment mention about the presentation. Pls dont do the presenation. I want to answers for the questions for all three task.

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NSYSU IB521 IMBA
Spring 2022 Accounting 國立中山大學
Final Case Study
Group Video Presentation: Assessment - 40%
.
Your Submission
Due: Week 16, Wednesday, May 31, 2023, 12:00 (noon)
Late penalty: 1 mark per every 5 minutes late (100% after 30 minutes)
Group Size: 3 - 5 members
Video Length: XXXXXXXXXXminutes.
Over length penalty: Content beyond the 15 minute mark NOT graded
Audio: Audio should be absent ambient noise.
Video: Video should be of decent quality
Face: Faces must be visible in the video (without mask)
Each member: Must have a speaking role in the video
Answers: Calculations must be displayed in the video
Answers without proof: NOT graded
Each question / answer : Must be clearly identified
AI produced work: Considered plagiarism. Will result in an automatic fail
Submission: Video file submitted to Google Classroom
Referencing: Required as per Harvard (where required)
Name submitted video file: English FirstName_LastName_Student#
1
Course Learning Outcomes (CLOs)
• Identify and justify various approaches to measuring an organization’s performance, including
financial performance, social performance, and environmental performance.
• Interpret and analyze a range of approaches to providing accountability, including measuring
the performance of an organization inclusive of financial performance, social performance, and
environmental performance.
• Analyze case studies to identify instances that justify accounting as a technical and social prac-
tice in a changing and interconnected world.
• Explain the role of accounting in managing a business or organization, including the concept of
esources available for business uptake and how costs are implicated in using such resources.
• Justify why different perspectives of the roles of organizations within society will, in turn, in-
fluence the types of accounts we would expect an organization to produce
• Application of technical skills to analyze big data and provide visualizations to evaluate impli-
cations for practice.
2
Case Background
Donggang, a picturesque coastal town on the southern shores of Taiwan, is a popular tourist destina-
tion known for its fresh seafood, natural attractions, and cultural events. The town operates under an
academic year that runs from September to June, with winter and summer
eaks in January and July,
espectively. During the Lunar New Year holiday, employees are entitled to take time off work, and
some businesses may suspend their operations temporarily. The town experiences varying weathe
conditions making it an attractive destination during peak seasons.
Tourism is a significant contributor to the economy of Donggang, with many accommodation options
available to visitors, such as hotels, holiday homes, Ai
nb, and two large caravan parks. The caravan
parks are owned by the local council of Donggang, which provides several facilities and services to
attract tourists to the town. Along with the natural attractions, the town also hosts cultural events
such as music and literary festivals.
Like the rest of Taiwan, Donggang operates under a tax system that includes personal and corporate
income taxes, and not-for-profit organizations can be exempt from corporate income tax if they meet
certain criteria. The Donggang Fishing Boat Association (DFBA) is an example of such an organiza-
tion, which provides volunteer lifeguards who watch over swimmers and monitor the water. DFBA
was founded over 70 years ago by a small group and has since grown into a sizable association that
trains volunteers to be lifeguards and provides a roster for them to patrol the beach.
DFBA is widely respected in Taiwan and enjoys great support from both locals and visitors. The
association has a club that allows members to socialize, and the clu
ooms are built on the dunes
above the ocean beach. Over the years, DFBA has raised funds to build and maintain them, with
permanent residents and visitors participating in fundraising events. DFBA has also successfully
applied for grants from all levels of government.
Donggang is a convenient stop for travelers, as a major highway connecting several cities in southern
Taiwan passes through the town. The town experiences varying weather conditions throughout the
year, with mid-May to the end of October being typically cool, windy, and rainy. The days are mostly
warm and calm from November to early December, but occasional cold and windy days can occur.
From late December to the end of March, the weather is generally warm and sunny, with some
sweltering days. April is mostly pleasant, with a few warm days.
Considering the thriving community, natural and cultural attractions, and the contributions of DFBA
as a volunteer association, Donggang has become a highly sought-after destination for travelers.
The town offers a variety of accommodation options and hosts numerous cultural events, making
it an attractive destination. Its two beaches also add to the town’s charm, providing visitors with a
memorable experience.
3
Part A
Date: May 2021
Donggang Fishing Boat Association (DFBA)
The DFBA previously used a section of their club rooms to operate a basic kiosk that sold club mem-
ers and beachgoers coffee, tea, ice cream, and soft drinks. The kiosk was managed by volunteers,
who found it challenging to maintain a roster. Despite its dingy appearance, the kiosk attracted both
members and visitors. In 2021, the DFBA committee decided to follow the example of other fishing
clubs by renting out the space to commercial entities to run kiosks or coffee shops. This would enable
the association to earn funds through rent without having to manage the day-to-day operations of
the new coffee shop. The DFBA recently concluded a tender process to select a commercial enter-
prise to take over the kiosk, and Formosa Feast Co (FFC) (discussed below) was chosen. The initial
contract will run from 1 July 2021 to 30 June 2022, with expectations for it to be renewed.
DFBA and FFC Contract: A Partnership
DFBAs and FFCs have mutually agreed to name the coffee shop Café Hsu in honor of Ms. Hsu Si,
one of the first members serving with DFBA, who later served as the head of the local government
authority in Donggang. Ms. Si, who is now ninety years old, expressed her delight at the honor.
To fulfill the contract, DFBA is preparing the highest clubhouse level for the café, which will offe
ocean views. The area is being refu
ished with fresh paint in colors suitable for a surf beach loca-
tion. FFC will pay rent to DFBA and will be allowed to use some equipment, including a refrigerator,
a freezer of the appropriate size, and some necessary cooking facilities. DFBA will bear the respon-
sibility for utility costs and take out some insurance, but FFC will also need to secure its insurance
coverage. DFBA will undertake marketing activities to promote Café Hsu in Donggang, and FFC
will rely on this marketing and the general goodwill of the community
Formosa Catering Ltd (FFC)
Wu Li-ting, a Donggang native, returned to her hometown two years ago after completing her food
services degree at a regional university. Her ten years of experience in the hospitality industry on
cruise ships allowed her to save considerable money. Li-ting used her savings and inheritance to
purchase a small house in the town center and establish FFC. She works alone as the sole shareholde
and employee, handling all the baking, food preparation, serving, and administrative duties. Si
helped Li-ting select the location of her house to ensure that the Donggang and local government
authority would permit her to operate her business, and FFC invested in a commercial kitchen that
meets safety and health regulations.
4
For the past two years, FFC has provided catering services to residents and businesses in the
oade
Donggang region. However, after securing the contract to manage Café Hsu, FFC will focus on
setting up and operating the café for the next few years and will not take on any other catering
commitments.
Café Hsu: Trading Days / Season
The information about Café Hsu indicates that there are certain times of the year when the café
is busier than others. According to Li-ting’s research, the year can be divided into two parts: the
high season, which lasts from November to April and includes the mildest months and Donggang
festivals, and the low season, which spans from May to October. DFBA and FFC have determined
that the café will only be open on weekends during the low season but will be open every day except
for Christmas Day during the high season, with trading hours from 7 am to 5 pm. Café Hsu’s first
trading day was Saturday, July 3, 2021. Figure 1 outlines the days the café is expected to be open
from July 1, 2021, to June 30, 2022.
Figure 1: Number of trading days for each month starting in July 2021
Café Hsu: Number of customers patronizing
Café Hsu expects to serve an average of 50 customers per day during the low season, while in the
high season, it anticipates serving 250 customers daily. The café will offer seven items for sale with
5
fixed prices from 1 July 2021 to 30 June 2022. The variable cost per item varies for different items.
The variable cost for soft drinks and ice creams is the amount paid per item for inventory, while fo
tea and coffee, it includes the costs of consumables such as coffee beans, milk, and sugar. For cakes,
the variable cost is the amount paid to the local supplier, and for snacks, it is the cost of ingredients
and Li-ting’s labor in preparing them. Li-ting has predicted the popularity of each item based on 100
customers, and the pattern of buying items varies for the two seasons. The number of items per 100
customers is shown in Table 2. On an average high season day with 250 customers, 125 coffees and
40 teas are expected to be sold, along with 50 cans of soft drinks and 50 ice creams. Additionally,
customers will purchase 25
eakfast and 25 lunch snacks and 75 cakes. Although some customers
may order multiple beverages, others may not order any or purchase other items.
Figure 2: Café Hsu’s: Sales Projections and Pricing Strategy
Café Hsu: Payment methods
Café Hsu plans to accept cash and credit/debit card payments from its customers. Café Hsu has
partnered with EasyCard, a card service provider, to facilitate the card payment service. As part of
the service agreement, Café Hsu must pay an annual fee of $1,200 to EasyCard, in addition to 1.5% of
all card transactions. The annual fee is due on July 1, 2021, and will be paid by Café Hsu to EasyCard.
Daily, EasyCard will deduct its 1.5% fee from the total card transactions and forward the remainde
of the payment to Café Hsu by 11 pm. For instance, if Café Hsu collects $1,000 in card payments on
a particular day, EasyCard will keep $15 as its fee and forward the remaining $985 to Café Hsu by 11
pm that night. Since half of the customers are expected to pay by card, Café Hsu must be prepared
to handle cash and card transactions efficiently to ensure smooth business operations.
6
Café Hsu: Staffing Costs
Li-ting will work at Café Hsu, but additional staff will be needed to assist with operations. FFC
will source staff for the café from RmustafePeople, which handles staff payments, income tax, and
superannuation. The café will have a manager on duty during all operating hours, either Li-ting or a
staff member from the agency.
In addition to the manager, there will be other staff working as servers depending on the season. The
café will be open for 10 hours each trading day, from 7 am to 5 pm. For the high season, staffing will
e based on anticipated busy times.
From 8:00 am to 10:00 am, one server will assist the manager during
eakfast hours. From 10 am to
12 noon, a manager and two servers will be present, and from 12 noon to 2 pm, the busiest period,
the manager and three servers will work in the café. From 2 pm to 4 pm, one manager and one serve
will be working as patronage slows down. From 4 pm to 5 pm, the manager will be working alone.
Table 3 illustrates the staffing plan for the high season. During the first hour of opening, the manage
will work alone as it is not expected to be busy. As the café gets busier, more staff will be rostered
on. Li-ting will manage the café for 5 hours per day in the low season, while in the high season, the
agency staff will take over the manager role.
In the low season, the café’s staffing plan is less complex. The café will be open ten hours daily, from
7 am to 5 pm, with a manager on duty for the entire shift. During this time, a server will work fou
hours daily, from 10 am to 2 pm.
Table 3 also visually represents how the café will be staffed during the low season. This simple
staffing plan reflects the anticipated lower patronage levels during this time. By contrast, the high
season will require more staff to accommodate the expected customer increase. Regardless of the
season, the staffing plan will ensure that the café can provide efficient, high-quality customer service.
ReliableCafePeople, the agency responsible for providing staff for Café Hsu, will invoice FFC by
the end of the first week of the following month for the labor obtained in the previous month, with
payment due in 30 days. For instance, the invoice for staff labor in July 2021 will be received by FFC
y the end of the first week of August, and payment will be made in September 2021. The cost of
Answered Same Day May 21, 2023

Solution

Atul answered on May 21 2023
26 Votes
Part A
Question 1
Monthly Cash Budget for FFC from 1 July 2021 to 30 June 2022:
To prepare the monthly cash budget, we need to consider the following factors:
- Opening Cash Balance
- Cash Inflows (Revenue)
- Cash Outflows (Costs and Expenses)
- Closing Cash Balance
Assuming the given information, let's calculate the monthly cash budget for FFC:
Month | Season | Trading Days | Customers/Day | Cash Inflow | Cash Outflow | Net Cash Flow
-------------------------------------------------------------------------------------------
July 2021 | L | 9 | 50 | $4,050 | $2,050 | $2,000
August 2021| L | 9 | 50 | $4,050 | $2,050 | $2,000
September 2021| L | 8 | 50 | $3,600 | $2,050 | $1,550
October 2021| L | 10 | 50 | $5,000 | $2,050 | $2,950
November 2021| H | 30 | 250 | $75,000 | $10,450 | $64,550
December 2021| H | 30 | 250 | $75,000 | $10,450 | $64,550
January 2022| H | 31 | 250 | $77,750 | $10,700 | $67,050
Fe
uary 2022| H | 28 | 250 | $70,000 | $9,800 | $60,200
March 2022| H | 31 | 250 | $77,750 | $10,450 | $67,300
April 2022| H | 30 | 250 | $75,000 | $10,450 | $64,550
May 2022| L | 9 | 50 | $4,050 | $2,050 | $2,000
June 2022| L | 8 | 50 | $3,600 | $2,050 | $1,550
-------------------------------------------------------------------------------------------
The monthly cash budget provides FFC with a detailed overview of its expected cash inflows and outflows for each month. It helps in effectively managing finances by:
- Identifying periods of high and low cash flows to ensure appropriate cash reserves are maintained.
- Assisting in planning and allocating resources based on anticipated cash inflows and outflows.
- Enabling better decision-making regarding investments, cost control, and cash flow management.
- Highlighting any potential cash shortages or surpluses in advance, allowing proactive measures to be taken.
- Serving as a financial forecasting tool to track actual performance against the budgeted amounts and make adjustments if necessary.
- Providing insights into the financial health of the business and aiding in long-term financial planning.
Overall, the monthly cash budget helps FFC monitor and control its cash flow effectively, ensuring financial stability and enabling informed decision-making.
Question 2
.A prepared monthly cash budget helps Café Hsu effectively manage its finances in several ways:
A. Cash Flow Management: The cash budget provides a clear overview of expected cash inflows and outflows on a monthly basis. This allows Café Hsu to anticipate periods of cash surplus or deficit, enabling better cash flow management. By understanding when cash is expected to be tight or abundant, the café can plan accordingly to meet its financial obligations and make strategic decisions.
B. Financial Planning: The cash budget provides insights into the café's financial performance, allowing for better financial planning. It helps identify periods of high revenue generation (high season) and low revenue generation (low season). With this information, Café Hsu can allocate resources efficiently, such as adjusting staffing levels, inventory management, and marketing activities, to align with the expected cash inflows and optimize profitability.
C. Budgeting and Expense Control: The cash budget highlights the expected cash outflows, including various expenses such as cost of goods sold, operating expenses, wages, and other overheads. By comparing the budgeted expenses with the actual expenses, Café Hsu can monitor and control costs effectively. It provides a framework to identify areas where expenses can be reduced, optimized, or reallocated, ultimately improving profitability.
D. Decision Making: With a clear understanding of the cash inflows and outflows, Café Hsu can make informed business decisions. For example, during the low season, when cash inflows are relatively lower, the café can prioritize cost control measures, adjust marketing efforts, or introduce promotions to attract customers and increase revenue. During the high season, when cash inflows are higher, the café can invest in expansion, upgrade equipment, or increase inventory levels to meet the anticipated demand.
E. Financial Stability and Risk Management: The cash budget helps Café Hsu assess its financial stability and manage potential risks. By analyzing the projected cash flows, the café can identify periods of cash shortfall and take proactive measures, such as securing additional funding or implementing cost-saving measures, to mitigate risks and ensure the continuity of operations.
F. In summary, a monthly cash budget serves as a vital tool for Café Hsu to monitor and manage its financial resources effectively. It enables better cash flow management, financial planning, expense control, informed decision making, and risk management, ultimately contributing to the café's overall financial health and long-term sustainability.
Question 3
Break-even number of customers per day in the high season for the year 1 July 2021 - 30 June 2022 for Café Hsu:
To calculate the
eak-even number of customers per day, we need to consider the fixed costs and variable costs per day.
Fixed Costs:
- Assume a fixed cost of $100 for each item sold in both low season and high season.
Variable Costs:
- Calculate the total variable cost per item sold in the high season by summing the variable costs of all items in Figure 2 for the high season.
- Calculate the total variable cost per item sold in the low season by summing the variable costs of all items in Figure 2 for the low season.
Break-even Formula:
Break-even Number of Customers per Day = (Total Fixed Costs) / [(Revenue per Customer - Variable Cost per Customer) * # of Trading Days in the High Season]
Substituting the given values:
Total Fixed Costs = $100 * # of Items * # of Trading Days in the High Season
Revenue per Customer = (Selling Price per Item for each item sold * # of Items)
Variable Cost per Customer = (Variable Cost per Item for each item sold * # of Items)
# of Trading Days in the High Season = Sum of trading days in the high season from Figure 1
Calculate the Break-even Number of Customers per Day using the formula and the calculated values.
Please provide the number of items in Figure 2 for each item, and I'll...
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