Determine the solution to each of the following independent cases:
a. Hillside College has annual fixed operating costs of $12,500,000 and variable operating costs of $1,000 per student. Tuition is $8,000 per student for the coming academic year, with a projected enrollment of 1,500 students. Expected revenues from endowments and federal and state grants total $250,000. Determine the amount the college must obtain from other sources.
b. The Hillside College Student Association is planning a fall concert. Expected costs (renting a hall, hiring a band, etc.) are $30,000. Assuming 3,000 people attend the concert, determine the breakeven price per ticket. How much will the association lose if this price is charged and only 2,700 tickets are sold?
c. City Hospital has a contract with the city to provide indigent health care on an outpatient basis for $25 per visit. The patient will pay $5 of this amount, with the city paying the balance ($20). Determine the amount the city will pay if the hospital has 10,000 patient visits.
d. Christmas for the Needy is a civic organization that provides Christmas presents to disadvantaged children. The annual costs of this activity are $5,000, plus $10 per present. Determine the number of presents the organization can provide with $20,000© BrainMass Inc. brainmass.com October 17, 2018, 12:53 pm ad1c9bdddf
This solution provides calculations in Excel for amount paid, price, and numbers of presents.
Governmental and Not-for-profit Accounting - Financial Reporting Requirements
Question 1 -
In 1999, GASB introduced a new financial reporting model for state and local governments. As a result, there were significant changes made in the format and content of government financial reports. Briefly describe at least two changes. Why were these changes initiated? Do you believe these changes have achieved their intended purpose? What limitations to transparency still remain under the new reporting model?
GASB Statement No. 14 states that the financial reporting entity of a government should consist of a primary government and any component units. In your opinion, what is the most significant difference between a primary government and component unit? What criterion exists for determining whether to combine a primary government and component unit? For components included what criterion should be used to determine whether the component unit should be presented discretely or blended? Despite the guidance provided by Statement No. 14, what might be the three reasons that drive inconsistent application?
Question 2 -
GASB refers to accountability as the cornerstone of financial reporting for governments. "Financial accountability" is a term used to describe a relationship between two entities. Do you think an organization can be financially accountable for another in government? Explain how it is possible by giving at least two examples. In your opinion, how does the concept of financial accountability compare to that of consolidation? Explain your response.