Question

In: Accounting

The following information on maintenance and repair costs and revenues for the last two years is...

The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.

Month Maintenance and Repair Cost ($000) Revenues ($000)
July $1.66 $46.00
August 2.63 40.00
September 2.15 36.00
October 1.56 52.00
November 1.65 64.00
December 0.49 92.00
January 2.47 32.00
February 2.51 38.00
March 2.37 48.00
April 2.33 50.00
May 1.39 54.00
June 1.13 66.00
July 1.95 60.00
August 1.37 54.00
September 1.92 62.00
October 1.73 64.00
November 0.78 74.00
December 0.11 104.00
January 1.93 48.00
February 1.63 50.00
March 1.04 70.00
April 1.30 74.00
May 1.30 60.00
June 1.72 56.00

Required:

Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R Square and Standard Error" to 7 decimal places, "Intercept and Revenues" to 4 decimal places.)

Regression Statistics
Multiple R
R Square
Standard Error
Observations
Coefficients
Intercept
Revenues

Solutions

Expert Solution

Let X be the revenue and Y be the maintenance and repair cost. Commands to perform regression analysis in excel

  1. Enter data into excel sheet
  2. Goto Data>> Data Analysis >> Regression
  3. For Input Y value select column for maintence and rapair cost
  4. For Input X values select column for revenue.
  5. Select empty cell for output range

The Excel regression output is:

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The following information on maintenance and repair costs and revenues for the last two years is...
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost. Month Maintenance and Repair Cost ($000) Revenues ($000) July $2.31 $59.00 August 3.28 53.00 September 2.80 49.00 October 2.21 65.00 November 2.30 77.00 December 1.14 105.00 January 3.12 45.00 February 3.16 51.00 March 3.02 61.00...
The following information on maintenance and repair costs and revenues for the last two years is...
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost. Month Maintenance and Repair Cost ($000) Revenues ($000) July $1.86 $50.00 August 2.83 44.00 September 2.35 40.00 October 1.76 56.00 November 1.85 68.00 December 0.69 96.00 January 2.67 36.00 February 2.71 42.00 March 2.57 52.00...
The following information on maintenance and repair costs and revenues for the last two years is...
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost. Month Maintenance and Repair Cost ($000) Revenues ($000) July $2.01 $53.00 August 2.98 47.00 September 2.50 43.00 October 1.91 59.00 November 2.00 71.00 December 0.84 99.00 January 2.82 39.00 February 2.86 45.00 March 2.72 55.00...
Your friend owns a bicycle shop that derives most of its revenues from repair and maintenance...
Your friend owns a bicycle shop that derives most of its revenues from repair and maintenance services. Her services range from simple tune-ups to complex rebuilding of racing and mountain bikes. She has four employees who work at the shop and she rents the building that the business operates out of. Respond to the following questions: 1.) List two specific major costs of operations that would be considered to be direct costs, and explain your reasoning. 2.) The shop served...
A firm has the following information for the last two years – all amounts are in...
A firm has the following information for the last two years – all amounts are in U.S. dollars.                                                 This year         Last year                                                 2019                2018                Revenues                    99,000             90,000             EBIT                            33,000             30,000             EAT                             16,500             15,000             EPS                             1.80                 1.50     This firm’s Degree of Financial Leverage is: a. 1 b. 3 c. 2 d. none of the above
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. Dollars in minus dollars out. Adjusted accounting profits. Add back depreciation tax shield. b. Calculate the operating cash flow for the repair shop using the three methods...
The owner of a bicycle repair shop forecasts revenues of $180,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of $180,000 a year. Variable costs will be $55,000 and rental costs for the shop are $35000 a year. Depreciation on the repair tools will be $15000 a. Prepare an income statement for the shop based on these estimates. The tax rate is 20% b. Calculate the Operating cash flow for the repair shop using three methods given below dollars in minus dollars out adjusted accounting profits add back depreciation tax...
The owner of a bicycle repair shop forecasts revenues of $200,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of $200,000 a year. Variable costs will be $60,000, and rental costs for the shop are $40,000 a year. Depreciation on the repair tools will be $20,000. b. Calculate the operating cash flow for the repair shop using the three methods given below: Now calculate the operating cash flow. Dollars in minus dollars out. Adjusted accounting profits. Add back depreciation tax shield.
The owner of a bicycle repair shop forecasts revenues of $224,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of $224,000 a year. Variable costs will be $66,000, and rental costs for the shop are $46,000 a year. Depreciation on the repair tools will be $26,000. Prepare an income statement for the shop based on these estimates. The tax rate is 40%. Calculate operating cash flow for the year by using all three methods: (a) Dollars in minus dollars out; (b) Adjusted accounting profits; and (c) Add back depreciation tax...
A study investigated maintenance and repair costs for automobiles. A random sample of 39 automobile owners...
A study investigated maintenance and repair costs for automobiles. A random sample of 39 automobile owners were asked how much they spent on maintenance and repair costs in the last year. The average amount spent was 1387.782 dollars with a standard deviation of 170 dollars. Is there evidence at the 0.05 level that maintenance and repair costs exceeds 1320 dollars annually? HoHo: Select an answer μ p̂ p ȳ  ? ≠ = > <       HaHa:Select an answer p̂ p ȳ μ  ?...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT