4. Hannah is proud of the accounting firm she has built since leaving a Big 4 firm. She currently has 20 CPAs that bill on average 1,750 hours per year. Her firm’s reputation has become so good that she has a great opportunity to grow. In planning for the next five years, she has decided to add five newly graduated CPAs in each of the next five years. Since these accountants do not have the experience of her seasoned staff, she forecasts them to only bill 60% of the current average level in their first year before getting to the average in subsequent years. In developing her plan, she knows she has to plan for some employee attrition (she left her first accounting job). In looking at her current staff, she expects to lose one of the current staff members each year. She also believes she will lose 40% of the new hires after the first year. In reviewing her plan, Hannah now expects she will bill _____ more hours in the fifth year than she does currently. Please solve with excel. Group of answer choices a. 17,500 b. 14,500 c. 31,500 d. 52,500
4. Hannah is proud of the accounting firm she has built since leaving a Big 4 firm. She currently has 20 CPAs that bill on average 1,750 hours per year. Her firm’s reputation has become so good that she has a great opportunity to grow. In planning for the next five years, she has decided to add five newly graduated CPAs in each of the next five years. Since these accountants do not have the experience of her seasoned staff, she forecasts them to only bill 60% of the current average level in their first year before getting to the average in subsequent years. In developing her plan, she knows she has to plan for some employee attrition (she left her first accounting job). In looking at her current staff, she expects to lose one of the current staff members each year. She also believes she will lose 40% of the new hires after the first year. In reviewing her plan, Hannah now expects she will bill _____ more hours in the fifth year than she does currently. Please solve with excel. Group of answer choices a. 17,500 b. 14,500 c. 31,500 d. 52,500
Chapter2: Career Planning
Section: Chapter Questions
Problem 1FPC
Related questions
Question
4. Hannah is proud of the accounting firm she has built since leaving a Big 4 firm. She currently has 20 CPAs that bill on average 1,750 hours per year. Her firm’s reputation has become so good that she has a great opportunity to grow. In planning for the next five years, she has decided to add five newly graduated CPAs in each of the next five years. Since these accountants do not have the experience of her seasoned staff, she forecasts them to only bill 60% of the current average level in their first year before getting to the average in subsequent years. In developing her plan, she knows she has to plan for some employee attrition (she left her first accounting job). In looking at her current staff, she expects to lose one of the current staff members each year. She also believes she will lose 40% of the new hires after the first year. In reviewing her plan, Hannah now expects she will bill _____ more hours in the fifth year than she does currently. Please solve with excel.
Group of answer choices
a. 17,500
b. 14,500
c. 31,500
d. 52,500
Expert Solution
Step 1- Answer
Correct option:
a. 17,500
Incorrect option:
b. 14,500
c. 31,500
d. 52,500
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