75 words or more….

1. As a restaurant manager, Ian knows his business well and enjoys servicing his guests. He leaves all the financial dealings to his partner, Patrick. Ian's philosophy is that as long as customers are coming in to dine, his restaurant will do just fine. He entrusts all of the financial matters of the business to Patrick. From a financial standpoint, do you share Ian's view? Is there any downside to Ian not actively participating in the financial management of his restaurant? If so, please explain.

2. Why do you think this scenario was under an Ethics heading? Is there any recent history where one executive has trusted another executive to "do their job"? The discussion on this topic has been outstanding and well thought out.

3. I like that teamwork is critical to success of the operation, but could Ian and Patrick work together to achieve their own comfort levels and still be successful? This is about the left hand knowing what the right hand is doing and as partners they are both fully accountable for the actions of the other. Where in recent history have we seen someone in a large corporation blame someone else for some corporate wrongdoing?

4. Review the SEC Web site at and the FASB Web site at Identify the mission and main activities of the SEC.

Identify the mission and main activities of the FASB. What are the similarities and differences between the SEC and FASB? Which of these entities do you feel is the most important and relevant to the hotel industry? Please explain why you chose that one and why the other one is not as important. Respond to your classmates' answers by explaining why you agree or disagree with their choices for the most relevant principle.

5. I have often wondered what is meant by "facilitate capital formation" as you quoted from the web site. Does the SEC actually do this in your opinion?Class, please weigh in.

6. how does the SEC add expense to the stock of a company? Yes, they inform investors but I've always wondered how they actually facilitate capital formation. Does informing investors actually facilitate capital formation.

#1

Locate an article about the Uniform System of Accounts for the Lodging Industry. The article should be written within the last 5 years.

Write a 150- to 200-word summary of your selected article.

#2

Part 1 -

Please address thoroughly the following topics from Ch. 2:

A. Briefly explain in your own words each of the primary financial statements

▪Income Statement

▪Balance Sheet

▪Statement of Cash Flows

B. What is the difference between the income statement and the balance sheet?

C. What is the difference between the income statement and the cash flow statement?

D. Explain why each is important to a hospitality manager. (Three responses required here, one for each financial statement.) Yes, the Statement of Cash Flows does tie the income and balance sheet together, but how?

E. Explain the purpose of the three sections of the Statement of Cash Flows.

F. Provide at least one specific example of cash inflow and one specific example of cash outflow for a hospitality business for each of these three sections (6 examples in total). Do not use the examples in the reading

Part 2 -

In addition to the paper above, please respond to the following exercises:

1Explain why Equity as shown on the Balance Sheet may not represent the true value of the company.

2If beverage inventory for W.S. Sports Bar goes from $165,000 on December 31, 2012, to $160,000 on January 31, 2013, explain why this constitutes a cash inflow or cash outflow in its cash flow from operations.

3Gabi's Grill purchased a new ice machine in March.

A. In Gabi's cash flow statement for that month in which section of the statement of cash flow will the purchase appear and

B. Why does it belong in that section?

4Consider the aging table below. What will be Michael's Catering's total estimated bad debts if his estimated percentage uncollectible is as the chart shows. You must show all your calculations to get full credit.

Michael's Catering
Number of Days
Customer / Outstanding / Current / 1-30 / 31-60 / 61-90 / Over 90
M. Robinson / 100 / 100
B. Matheson / 350 / 350
A. Sanchez / 2,500 / 2,500
J. Fortunado / 375 / 375
B. Stavros / 300 / 300
B. Stiller / 470 / 470
All Others / 20,000 / 10,000 / 7,000 / 1,000 / 500 / 1,500
Total / 24,095 / 12,600 / 7,000 / 1,350 / 875 / 2,270
Estimated % Uncollectible / 1.0% / 1.5% / 14.0% / 22.0% / 50.0%