I need help understanding this problem. Can you please explain them to me.
I need help understanding this problem. Can you please explain them to me.
Caesar's net working capital for 2014 is a. .20 b. 14,607 c. 1,239 d. 1.49 Based on Caesar's net working capital, which of the following is a true statement? Caesar's Palace has a negative working capital, which indicates that they have more debts coming due in the current year than they have liquid assets to pay them. Caesar's Palace has a positive working capilal, which means they have plenty of liquid assets to pay their debis coming due in the current year. Caesar's Palace has a positive working capital, which means their total assets are greater than their total liabilities. Caesar's Palace has a negative working capital, which means their total liabilities are greater than their total assets. Calculate accounts receivable turnover for 2014. a. 14.5 times b. 16.4 times c. 15 times d. 13.7 times Based on Caesar's Palace's Time-Interest Earning Ratio, which of the following statements is false? a. There is plenty of operating income to cover interest expense b. The times-earning ratio measures the number of times operating income can cover interest expense. c. The time-earning ratio for Caesar's palace is -.17 d. Caesar's Palace cannot cover any interest expense with operating income. 1. Caesars Palace(i) Las Vegas opened in 1966. It is the twelfth largest hotel in the world. Caesars Palace(i) Las Vegas, at the start of 2015 , included six towers containing almost 4,000 guest rooms. Following is a table listing condensed revenue and expense figures for Caesars Entertainment Corporation for the years ending December 31, 2012 through 2014. Which department generated the lowest income in 2014 ? a. Casino b. There is not enough information c. Rooms d. Food and beverage This department was also the lowest income in 2013 and 2012. a. True b. False 2. Caesars Palace (i) made headlines when it undertook a $75 million renovation in mid-September 2015. In January 1, 2016, the newly renamed Julius Tower reopened, replacing the Roman Tower. In addition, 20 guest rooms were added to the tower which means the volume of rooms booked during the year is expected to be 195,000 rooms. Caesars expects the Julius Tower room rate to average around $145 per night. This increase, a $25 or 20.2% increase, reflects, in part, the room improvements. Assume that the annual fixed operating costs for the Julius Tower in Caesars Palace(i) Las Vegas will be $5,000,000. This amount represents an increase of $200,000 per year compared to prerenovation. Also assume that the variable cost per hotel room night after the renovation is $25; before the renovation, the variable cost per room night was $20. The contribution margin after the renovation is: a. $120 b. $106 c. S/24 d. $45 The break-even room nights for the new Julius Tower after renovation - Fixed Costs / CM is: a. 43,333 b. 47,170 c. 41,668 3. Caesars Entertainment Corporation (CEC) has several properties in Las Vegas, Nevada, which it owns or manages. The following list of selected property-related data is taken from CEC's 2014 Form 10-K, Item Caesars Entertainment Corporation Data from Form 10K, Item 2 As of December 31,2014 Cost accounting managers want you to calculate a cost activity pool rate that can be used to allocate the costs of the housekeepers to different facilitics. To do this, you need to select an activity measure to be the denominator in your calculations. Which of the following is the best choice to allocate the costs of the housekeepers? a. Table games b. Casino space-square footage c. Slot machines d. Number of hotel rooms and suites 4. Caesars Palace(B) Las Vegas will use budgets to make its financial plans. Let's assume that Caesars prepares budgets for each of its hotel towers, including the new Julius Tower. Here is a list of budgeting assumptions for the Julius Tower for 2016 : After completing a contribution margin income statement, the bottom-line is: a. $22,417,400 b. $26,034,000 c. $22,845,400 d. $25,606,000 5. Looking at the statements of cash flows above, which activity has generated the most cash for Cacsars? a. Investing Activitics b. Financing Activities c. Operating Activities d. None of the above How would the costs of renovation on the Julius Tower be reported on a statement of cash flows? a. An increase in investing activities b. An increase in financing activities c. A decrease in investing activities d. A decrease in financing activities 6. Caesar's net working capital for 2014 is a. .20 b. 14,607 c. 1,239 d. 1.49 Based on Caesar's net working capital, which of the following is a true statement? Caesar's Palace has a negative working capital, which indicates that they have more debts coming due in the current year than they have liquid assets to pay them. Caesar's Palace has a positive working capilal, which means they have plenty of liquid assets to pay their debis coming due in the current year. Caesar's Palace has a positive working capital, which means their total assets are greater than their total liabilities. Caesar's Palace has a negative working capital, which means their total liabilities are greater than their total assets. Calculate accounts receivable turnover for 2014. a. 14.5 times b. 16.4 times c. 15 times d. 13.7 times Based on Caesar's Palace's Time-Interest Earning Ratio, which of the following statements is false? a. There is plenty of operating income to cover interest expense b. The times-earning ratio measures the number of times operating income can cover interest expense. c. The time-earning ratio for Caesar's palace is -.17 d. Caesar's Palace cannot cover any interest expense with operating income. 1. Caesars Palace(i) Las Vegas opened in 1966. It is the twelfth largest hotel in the world. Caesars Palace(i) Las Vegas, at the start of 2015 , included six towers containing almost 4,000 guest rooms. Following is a table listing condensed revenue and expense figures for Caesars Entertainment Corporation for the years ending December 31, 2012 through 2014. Which department generated the lowest income in 2014 ? a. Casino b. There is not enough information c. Rooms d. Food and beverage This department was also the lowest income in 2013 and 2012. a. True b. False 2. Caesars Palace (i) made headlines when it undertook a $75 million renovation in mid-September 2015. In January 1, 2016, the newly renamed Julius Tower reopened, replacing the Roman Tower. In addition, 20 guest rooms were added to the tower which means the volume of rooms booked during the year is expected to be 195,000 rooms. Caesars expects the Julius Tower room rate to average around $145 per night. This increase, a $25 or 20.2% increase, reflects, in part, the room improvements. Assume that the annual fixed operating costs for the Julius Tower in Caesars Palace(i) Las Vegas will be $5,000,000. This amount represents an increase of $200,000 per year compared to prerenovation. Also assume that the variable cost per hotel room night after the renovation is $25; before the renovation, the variable cost per room night was $20. The contribution margin after the renovation is: a. $120 b. $106 c. S/24 d. $45 The break-even room nights for the new Julius Tower after renovation - Fixed Costs / CM is: a. 43,333 b. 47,170 c. 41,668 3. Caesars Entertainment Corporation (CEC) has several properties in Las Vegas, Nevada, which it owns or manages. The following list of selected property-related data is taken from CEC's 2014 Form 10-K, Item Caesars Entertainment Corporation Data from Form 10K, Item 2 As of December 31,2014 Cost accounting managers want you to calculate a cost activity pool rate that can be used to allocate the costs of the housekeepers to different facilitics. To do this, you need to select an activity measure to be the denominator in your calculations. Which of the following is the best choice to allocate the costs of the housekeepers? a. Table games b. Casino space-square footage c. Slot machines d. Number of hotel rooms and suites 4. Caesars Palace(B) Las Vegas will use budgets to make its financial plans. Let's assume that Caesars prepares budgets for each of its hotel towers, including the new Julius Tower. Here is a list of budgeting assumptions for the Julius Tower for 2016 : After completing a contribution margin income statement, the bottom-line is: a. $22,417,400 b. $26,034,000 c. $22,845,400 d. $25,606,000 5. Looking at the statements of cash flows above, which activity has generated the most cash for Cacsars? a. Investing Activitics b. Financing Activities c. Operating Activities d. None of the above How would the costs of renovation on the Julius Tower be reported on a statement of cash flows? a. An increase in investing activities b. An increase in financing activities c. A decrease in investing activities d. A decrease in financing activities 6
