Required information

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The financial statements for Limited Brands, Inc. follow (fiscal years ending January):

Please refer to Limited Brands, Inc.’s financial statements above. Prepare common-size financial statements for Limited Brands, Inc. for 2006–2007.

Construct and show one box plot for the overall data. clearly show the values for the 5 box plot statistics

What are the values for the upper outlier and lower outlier limits?

Are there any outliers?

The Mallory Corporation

On December 31, 2006, the Mallory Corporation had the following activity in its fixed assets record.

Elatrip Company provides package tours for customers. The following transactions were completed by the company during September 2019.

Sept 1   Shareholders invested $ 500,000 into the business in exchange for ordinary shares.

Sept 2   Purchased $600 worth of office supplies for cash.

Sept 4   Purchased furniture from Damro Company for $5,000 and issued a 90 day, 8% promissory note.

Sept 7   Purchased equipment for $800 and postponed payment until September 28.

Sept 11 Earned revenue of $4,000, of which $3,000 is collected in cash and the balance is due on September 18.

Sept 13 Purchased a commuter van for $100,000. Elatrip paid $60,000 in cash and signed a 6 month, 7% promissory note for the balance due.

Sept 15 Company received $2,000 cash in advance for the service to be rendered on October 5.

Sept 16 Paid $6,000 rent for 2 months. (October and November 2017)

Sept 18 Collected the balance due from September 11.

Sept 20 Performed services for $ 5,000 and received a one month, 9% promissory note from customer.

Sept 25 Incurred $1,000 for repair and maintenance cost and the company issued a check for the amount.

Sept 27 A $800 bill was received for electricity and water expense for the month. The entire amount is due on October 1.

Sept 28 Company paid the balance due from September 7.

Sept 30 Paid $2,000 for employees’ salaries.

The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 113 Notes receivable, No. 124 Office supplies, 136 Prepaid rent, No.140 Furniture, No 145 Equipment, No 156 Commuter van, No 201 Accounts payable, No 211 Notes payable, No 220 Unearned service revenue, No 311 Share capital- ordinary, No 400 Service revenue, No 726 Repair and maintenance expense, No 735 Utilities expense, No 738 Salaries expense.

1)JOURNALIZE

The balance sheet of Flexor Company at December 31, 2004 showed the following: Cash, $4,200; Accounts Recievable, $10,300; Notes Recievable (Long Term), $23,000; Merchandise Inventory, $55,500; Prepaid insurance, $1,200; Notes Payable (short term), $20,000; Accounts Payable, $25,200; Current Portion of Long Term Debt, $8,000; Mortgage Payable, $80,200

How much was the working capital at December 31, 2004?

A company offers a bond with exactly 100 years to maturity (now 2000 to 2100) and its face value $2,000 that makes coupon payments at the end of each year.

Issue date: 2000; Maturity date: 2100

Coupon rate: 8%

2000 price: $2,000

2005 price: $1500

2010 price: $2,020.5

Q1: What is the interest rate in 2005 in market?

Q2: Sam bought this bond in 2005(yr) right after it made its coupon payment (he did not collect the coupon). Bob bought another bond at the same time with the same coupon rate, issue date and face value but a maturity date of 2015. Bob did not collect the coupon in 2005 either. It is 2010 now, if they were to sell their bonds today who would make more money?

Wal-Mart is the second-largest retailer in the world. The data file (Wal-Mart Revenue 2004-2009 data.xlsx) is posted below the case study two file, and it holds monthly data on Wal-Mart’s revenue, along with several possibly related economic variables.

1. Develop a multiple linear regression model to predict Wal-Mart's revenue, using CPI, Personal Consumption, and Retail Sales Index as the independent variables. You also need to create residual plots and scatter plots by selecting residual plots box and line fit plots box under “Residuals”. Note: Those plots are for the individual independent variables.
2. To generate the residual plot for the entire model, you need to follow the instruction below. Check the Residuals box under “Residuals” and Excel will generate predicted values and residuals at the bottom of the output for the multiple regression model. Then, highlight these two output values to create the residual plot by Excel’s scatter chart (Insert tab > Charts > Scatter chart). Comment on what you see on the plot. Note: This residual plot is for the entire model.
3. Does it seem that Wal-Mart’s revenue is closely related to the general state of the economy? Use all the plots and statistical criteria on the Regression Analysis output generated by Excel to explain it.

Identify and delete those five cases (rows) corresponding to December revenue. Then, use the new data set (without the December data) to complete the following problems.

4. Develop a multiple linear regression model to predict Wal-Mart's revenue, using CPI, Personal Consumption, and Retail Sales Index as the independent variables. You also need to create residual plots and scatter plots by selecting residual plots box and line fit plots box under “Residuals”. Note: Those plots are for the individual independent variables.
5. Check the Residuals box under “Residuals” and Excel will generate predicted values and residuals at the bottom of the output for the multiple regression model. Then, highlight these two output values to create the residual plot by Excel’s scatter chart (Insert tab > Charts > Scatter chart). Comment on what you see on the plot. Note: This residual plot is for the entire model.
6. Does it seem that Wal-Mart’s revenue is closely related to the general state of the economy? Use all the plots and statistical criteria on the Regression Analysis output generated by Excel to explain it.
7. Compare these two multiple regression models, and decide which of these two models is better? Use R-square values, adjusted R-square values, Significance F values, p-values, scatter plots and residual plots to explain your answer.

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for June as shown below:

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

What amount of revenue would be included in Adger’s flexible budget for June?

What amount of employee salaries and wages would be included in Adger’s flexible budget for June?

What amount of travel expenses would be included in Adger’s flexible budget for June?

What amount of other expenses would be included in Adger’s flexible budget for June?

What net operating income would appear in Adger’s flexible budget for June?

What is Adger’s revenue variance for June?

What is Adger’s employee salaries and wages spending variance for June?

What is Adger’s travel expenses spending variance for June?

What is Adger’s other expenses spending variance for June?

What amount of revenue would be included in Adger’s planning budget for June?

What amount of employee salaries and wages would be included in Adger’s planning budget for June?

What amount of travel expenses would be included in Adger’s planning budget for June?

What amount of other expenses would be included in Adger’s planning budget for June?

What activity variance would Adger report in June with respect to its revenue?

What activity variances would Adger report with respect to each of its expenses for June?

You are comparing the regression output across two publicly-traded companies. Both regressions were run using monthly data for 5 years and against the S&P500 with the returns on each company’s stock as the independent variable.

1.If the implied equity risk premium with a constant dividend growth rate and based on a broad U.S. stock market index is equal to 8% and the risk-free rate is 2%, what is the required return of an investor in Nero Cannery? Rand Foods?

2. You just found out that even though Rand Foods is incorporated in the U.S. it gets 100% of its revenues from Mexico. Is it appropriate to use an implied equity risk premium based on a U.S. stock market index for calculating an investor’s required return in Rand? Why or why not? If the Mexican government bond rating is A3 (not default-free), how will you approach the estimation of the ERP, i.e. what method will you use and what information do you need?

3. Is the regression above an “excess returns” regression or a “raw returns” regression? Explain.

(4) Interpret the R² and intercept for Rand Foods.