1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?1-b. Should the Housekeeping program be discontinued?2-a. Prepare a properly formatted segmented income statement.2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their ownhomes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping.Data on revenue and expenses for the past year follow:HomeMeals OnHouse-Nursing$ 921,000 $ 263,000 $ 407,000119,000Totalkeeping$ 251,000159,00092,000WheelsRevenuesVariable expenses487,000434,000209,000198,000Contribution margin144,000Fixed expenses:DepreciationLiability insuranceProgram administrators' salaries69,50043,700115,4008,30020,80040,60040,4007,50038,10081,40020,80015,40036,700General administrative overhead*184,200412,80052,600122,30050,200123,100Total fixed expenses167,400Net operating income (loss)$ 21,200 $ 21,700 $ 30,600 $ (31,100)*Allocated on the basis of program revenues.The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $21,200 to beunsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program.The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If theprogram were discontinued, the van would be donated to a charitable organization. None of the general administrative overheadwould be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administratorwould be avoided.

1) a) The fixed cost is not relevant to ascertain the continuation of business because it is already…

1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services?

1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 71P

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Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 927,000 $ 267,000 $ 402,000 $ 258,000 Variable expenses 465,000 114,000 195,000 156,000 Contribution margin 462,000 153,000 207,000 102,000 Fixed expenses: Depreciation 68,800 8,100 40,400 20,300 Liability insurance 43,200 20,200 7,600 15,400 Program administrators’ salaries 115,400 40,900 38,100 36,400 General administrative overhead* 185,400 53,400 80,400 51,600 Total fixed expenses 412,800 122,600 166,500 123,700 Net operating income (loss) $ 49,200 $ 30,400 $ 40,500 $ (21,700) *Allocated on the basis of…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 923,000 $ 265,000 $ 405,000 $ 253,000 Variable expenses 470,000 111,000 202,000 157,000 Contribution margin 453,000 154,000 203,000 96,000 Fixed expenses: Depreciation 69,200 8,200 40,400 20,600 Liability insurance 43,800 20,300 7,600 15,900 Program administrators’ salaries 116,000 40,900 38,200 36,900 General administrative overhead* 184,600 53,000 81,000 50,600 Total fixed expenses 413,600 122,400 167,200 124,000 Net operating income (loss) $ 39,400 $ 31,600 $ 35,800 $ (28,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 930,000 $ 267,000 $ 405,000 $ 258,000 Variable expenses 474,000 119,000 198,000 157,000 Contribution margin 456,000 148,000 207,000 101,000 Fixed expenses: Depreciation 69,100 8,300 40,600 20,200 Liability insurance 44,100 20,900 7,800 15,400 Program administrators’ salaries 114,600 40,200 38,400 36,000 General administrative overhead* 186,000 53,400 81,000 51,600 Total fixed expenses 413,800 122,800 167,800 123,200 Net operating income (loss) $ 42,200 $ 25,200 $ 39,200 $ (22,200) *Allocated on the basis of…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 919,000 $ 262,000 $ 402,000 $ 255,000 Variable expenses 471,000 112,000 205,000 154,000 Contribution margin 448,000 150,000 197,000 101,000 Fixed expenses: Depreciation 69,700 8,200 40,800 20,700 Liability insurance 43,100 20,100 7,400 15,600 Program administrators’ salaries 116,600 40,900 38,700 37,000 General administrative overhead* 183,800 52,400 80,400 51,000 Total fixed expenses 413,200 121,600 167,300 124,300 Net operating income (loss) $ 34,800 $ 28,400 $ 29,700 $ (23,300) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 929,000 $ 266,000 $ 406,000 $ 257,000 Variable expenses 468,000 116,000 196,000 156,000 Contribution margin 461,000 150,000 210,000 101,000 Fixed expenses: Depreciation 69,400 8,400 40,900 20,100 Liability insurance 43,400 20,500 7,400 15,500 Program administrators’ salaries 115,900 40,500 38,600 36,800 General administrative overhead* 185,800 53,200 81,200 51,400 Total fixed expenses 414,500 122,600 168,100 123,800 Net operating income (loss) $ 46,500 $ 27,400 $ 41,900 $ (22,800) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year’s…
Jackson County Senior Services is a nonprofit organization devoted to providing essential ser-vices to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization’s finances and considers the net operating income of $5,000 last year to be razor-thin. (Last year’s results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of perhaps discontinuing the housekeeping program. The depreciation in housekeeping is for a…
Tagaytay Twilight Senior Services is a newly established corporation devoted to providing essential services to seniors who live in their own homes within the Tagaytay City and its neighboring areas. Three services are provided for seniors – home nursing, meals on wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and perform test ordered by their physicians. The meals on wheels program delivers a hot meal once a day to each senior enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses for 2017 follow: Total Home Nursing Meals on Wheels House Keeping Revenues .................................... 900,000 260,000 400,000 240,000 Variable expenses........................ 490,000 120,000 210,000 160,000 Fixed expenses: Depreciation ............................ 68,000…
For each of the following organizations, determine its UBTI and any related UBIT. Connect, Inc., an exempt organization, provides food for the homeless. It oper- ates a thrift store that sells used clothing to the general public. The thrift shop is staffed solely by four salaried employees. All of the clothes it sells are received as contributions. The $100,000 profit generated for the year by the thrift shop is used in Connect’s mission of providing food to the homeless. Small, Inc., an exempt organization, recorded gross unrelated business income of $900 and unrelated business expenses of $400.
Prepare journal entries to record the following transactions of a nonprofit hospital, with expense transactionscategorized by function:1. The hospital billed its uninsured patients for $300,000. Based on historical experience, it expects tocollect 45 percent of that amount over time.2. Nurses and doctors employed by the hospital were paid their salaries, $120,000.3. The chief administrative officer was paid her salary of $12,000.4. The hospital paid its utility bill, $6,000.5. Depreciation on the equipment was $40,800.6. Several adults donated their time (worth $6,000) selling merchandise in the hospital gift shop.7. The hospital billed Medicare $120,000 for services provided at its established rates. The prospectivebilling arrangement gives Medicare a 40 percent discount from these rates.8. A contribution without donor restrictions of $4,800 was received. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care; $928,000 was paid by uninsured patients; and $8,222,000 was billed to Medicare, Medicaid, and insurance companies. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1). An unconditional contributionPage 687 of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimer’s patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. A total of $965,000 was received from…
Seniors Moving, a non-profit, had the following: contributions of $200,000; stamps and paper to send to donors to request more money, $20,000; salaries for case works that help senior citizens (for Seniors Moving's mission), $150,000; various gifts to donors, $30,000. What amount would be program expenses? Would Senior Movers have to show information in a separate statement of functional expenses (yes), or could show program/support in another report (No)? 1. 200,000, Yes 2. 150,000, No 3. 200,000, No 4. 150,000, Yes
a local social worker earning 14 per hour working for the state government contributed 550 hours of time at no charge to the Sunrise homeless shelter, a voluntary health and welfare entity. if not for these donated services. an additional staff person would have been hired by the entity. how should the Sunrise Homeless Shelter record the contributed services?