Thornton Camps, Inc. leases the land on which it builds camp sites. Thornton is considering opening a new site on land that requires $2,800 of rental payment per month. The variable cost of providing service is expected to be $6 per camper. The following chart shows the number of campers Thornton expects for the first year of operation of the new site.
Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total
290 330 340 360 580 600 740 750 440 470 290 410 5,600
Required:
1. Assuming that Thornton wants to earn $6 per camper, determine the price it should charge for a camp site in February and August. (Do not round intermediate calculations.)

The Answers are:

In February, Thorton should charge $6,760

In August, Thorton should charge $11,800

Explanation:

Before I take the solutions for each individual month (February and August), We are going to identify the costs used to run each of the camp site for each month, because this will form the base cost which will be added to the amount earned per camper. These costs include:

1. rental payment per month

2. variable service cost of $6 per camper, and the total cost here is multiplying this amount ($6) by the total number of campers.

After this, we will multiply the amount earned per camper by the number of campers for to get the total amount on all campers for that month.

Finally The total amount earned on the monthly campers are added to the base costs described above.

Now, Let me take the solution of each  month one after the other.

February (330 campers)

1. Rental cost per month = $2,800

2. Total variable service cost on campers = 6 × 330 campers = $1,980

3. Total amount earned on the campers = 6 × 330 = $1,980

Amount to be charged on the land in February = $2,800 + $1,980 + $1,980 = $6,760

For the month of August (750 campers)

1. Rental cost per month = $2,800

2. Total variable service cost on campers = 6 × 750 campers = $4,500

3. Total amount earned on the campers = 6 × 750 = $4,500

Amount to be charged on the land in August = $2,800 + $4,500 + $4,500 = $11,800

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.