Cashback Offer from 20th to 31st January 2021. Get Flat 10% Cashback credited to your account for a minimum transaction of $80. Post Your Question Today!

Question DetailsNormal
$ 10.00

Prepare a memo as the CFO of the

Question posted by
Online Tutor Profile
request

Prepare a memo as the CFO of the company. The memo should be directed to the CEO and the Players Associations answering the two questions.

The memo should be written on a Word document including any supporting schedule if required as embedded objects as part of the memo (Word document).

Case Study Details:
The Discussion Icon

ANALYSIS AND RESEARCH CASE: ACCOUNTING INFORMATION AND SALARY NEGOTIATIONS

Murphy Patriots Players' Association and Maxfield, the CEO of Murphy Patriots Baseball Company, ask your help in resolving a salary dispute. Maxfield presents the following income statement to the player representatives.
Murphy Patriots Baseball Company Income Statement Ticket revenues $2,000,000
Stadium rent expense $1,400,000 
Ticket expense 25,000 
Promotion 35,000 
Player salaries 400,000 
Staff salaries and miscellaneous 200,000 2,060,000
Net Income (loss) $(60,000)

Mr. Maxfield argues that the Murphy Patriots really lose money and, until things turn around, a salary increase is out of the question.

As a result of your inquiry, your discover that Murphy Patriots Baseball Company owns 91 percent of the voting stock in Patriots stadium, Inc. This venue is specifically designed for baseball and is where the Patriots play their entire home game schedule. However, Maxfield does not wish to consider the profits of Patriots Stadium in the negotiations with the players. He claims that "the stadium is really a separate business entity that was purchased separately from the team" and therefore does not concern players. The patriots Stadium income statement appears as follows:
Patriots Stadium Income Statement Stadium rent revenue $1,400,000 
Concession revenue 800,000 
Parking revenue 100,000 $2,300,000
Cost of goods sold 250,000 
Depreciation 80,000 
Staff salaries and miscellaneous 150,000 480,000
Net Income (loss) $1,820,000

Required

1. What advice would you provide the negotiating parties regarding the issue of considering the Patriots Stadium income statement in their discussions? What authoritative literature could you cite in supporting your advice?

2. What other pertinent information would you need to provide a specific recommendation regarding players' salaries?

Available Answer
$ 10.00

[Solved] Prepare a memo as the CFO of the

  • This solution is not purchased yet.
  • Submitted On 08 Mar, 2016 09:14:09
Answer posted by
Online Tutor Profile
Other Similar Questions
User Profile
Exper...

BTM8107-8 | Week: 8 | Activity: Apply MANOVA and Prepare a Course Reflection | Complete Solution

b. The statistic is an upper bound on F that yields a lower bound on the significance level.
c. Design: Intercept + Group
The "multivariate tests" section consecutively checks each factor influence on t...

User Profile
Tutor...

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we......
User Profile
Assig...

BTM 8107 8 Week 8 Activity Apply MANOVA and Prepare a Complete Course Reflection

Your assignment is attached..Thanks for purchasing my this assignment!...
User Profile
Tutor...

Prepare a 12- to 15-slide PowerPoint® presentation

This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to d...
User Profile
Tutor...

Prepare a complete slide presentation for the Board of Directors

Prepare a complete slide presentation for the Board...

The benefits of buying study notes from CourseMerit

homeworkhelptime
Assurance Of Timely Delivery
We value your patience, and to ensure you always receive your homework help within the promised time, our dedicated team of tutors begins their work as soon as the request arrives.
tutoring
Best Price In The Market
All the services that are available on our page cost only a nominal amount of money. In fact, the prices are lower than the industry standards. You can always expect value for money from us.
tutorsupport
Uninterrupted 24/7 Support
Our customer support wing remains online 24x7 to provide you seamless assistance. Also, when you post a query or a request here, you can expect an immediate response from our side.
closebutton

$ 629.35