PLEASE DETERMINE THE RESEARCH QUESTIONS FOR YOUR CLIENT HALL WINERY?
{EXAMPLE:when or how should Hall winery report ____ on the income statement? , What value should they report for Income statement?, when or where should they ___ on the B/S or I/S? ETC}
Hovercrafts R Us, Inc. Hovercrafts R' Us Inc. (HRU) manufactures and sells Hovercrafts for both recreational and commercial use. The F-491 Tomahawk Hovercraft is one of its best-selling products. HRU over- produced and offered a discounted price on its F-491 Tomahawk Hovercrafts during the month of June. HRU works with 12 hovercraft dealers (including WHCC) that facilitate the sale of its hovercraft inventory. The dealers do not take title of the hovercrafts they sell for HRU. Rocky Mountain Hovercraft Tours (RMHT) is one of the largest hovercraft tour operations in the northern half of south central Wyoming. RMHT has purchased all of its current Hovercraft fleet from HRU. The North American Hovercraft Tour Association (NAHTA) requires that all hover crafts used for public tours be replaced after 250,000 miles, per safety regulations. RMHT believes that five of the hovercrafts in its fleet will reach 250,000 miles within three months On June 10, 2017, RMHT's purchasing manager told HRU's head of sales that he was interested in taking advantage of the sale price on the F-491 Tomahawk. On June 26, 2017 RMHT contracted to purchased five new F-491 Hovercrafts for $1 million per hovercraft, a price discounted at 20%. RMHT has a $10 million revolving line of credit with Wyoming Federal Bank (WFB). On June 26, 2017 RMHT took $100,000 out of existing cash reserves and borrowed $4.9 million on its line of credit and paid HRU for the 5 F-491 hovercrafts on June 30, 2017. RMHT obtained the title to all 5 hovercrafts after making full payment and the goods were shipped to WHCC the same day. RMHT plans to begin making payments to repay the line of credit on August 1, 2019 and will pay 3% interest rate on the outstanding balance. The purchase of the hovercrafts was expedited so that RMHT could take advantage of the sale price. However, RMHT could find no available space to store the new hovercrafts. Per the contract, RMHT's will not accept delivery of the new hovercrafts until their existing fleet reaches the 250,000 miles and is disposed. HRU will ship the new F-491 Tomahawks to WHCC (40% owned by HRU) for storage until RMHT accepts all five F-491s. HRU will pay WHCC a market rate of $50,000 to store the hovercrafts for three months. RMHT's purchase price included the cost of storage at WHCC with an estimated delivery date of October 1, 2017. HRU is fully responsible for any damage to the hovercrafts while they are stored at WHCC. Hovercrafts R Us, Inc. Hovercrafts R' Us Inc. (HRU) manufactures and sells Hovercrafts for both recreational and commercial use. The F-491 Tomahawk Hovercraft is one of its best-selling products. HRU over- produced and offered a discounted price on its F-491 Tomahawk Hovercrafts during the month of June. HRU works with 12 hovercraft dealers (including WHCC) that facilitate the sale of its hovercraft inventory. The dealers do not take title of the hovercrafts they sell for HRU. Rocky Mountain Hovercraft Tours (RMHT) is one of the largest hovercraft tour operations in the northern half of south central Wyoming. RMHT has purchased all of its current Hovercraft fleet from HRU. The North American Hovercraft Tour Association (NAHTA) requires that all hover crafts used for public tours be replaced after 250,000 miles, per safety regulations. RMHT believes that five of the hovercrafts in its fleet will reach 250,000 miles within three months On June 10, 2017, RMHT's purchasing manager told HRU's head of sales that he was interested in taking advantage of the sale price on the F-491 Tomahawk. On June 26, 2017 RMHT contracted to purchased five new F-491 Hovercrafts for $1 million per hovercraft, a price discounted at 20%. RMHT has a $10 million revolving line of credit with Wyoming Federal Bank (WFB). On June 26, 2017 RMHT took $100,000 out of existing cash reserves and borrowed $4.9 million on its line of credit and paid HRU for the 5 F-491 hovercrafts on June 30, 2017. RMHT obtained the title to all 5 hovercrafts after making full payment and the goods were shipped to WHCC the same day. RMHT plans to begin making payments to repay the line of credit on August 1, 2019 and will pay 3% interest rate on the outstanding balance. The purchase of the hovercrafts was expedited so that RMHT could take advantage of the sale price. However, RMHT could find no available space to store the new hovercrafts. Per the contract, RMHT's will not accept delivery of the new hovercrafts until their existing fleet reaches the 250,000 miles and is disposed. HRU will ship the new F-491 Tomahawks to WHCC (40% owned by HRU) for storage until RMHT accepts all five F-491s. HRU will pay WHCC a market rate of $50,000 to store the hovercrafts for three months. RMHT's purchase price included the cost of storage at WHCC with an estimated delivery date of October 1, 2017. HRU is fully responsible for any damage to the hovercrafts while they are stored at WHCC
