You are evaluating a s project that develops AI cars. You dont have firm-level data,. For this project, you will need take a top-down valuation approach.
• The revenue of the transportation market is $50 billion dollars in the year of 2019. Its growth rate in 2020 is -5, in 2021 it is 3%, and goes 0%, 0%, 1%, 1%, 2%,2%,2%,2%,2% which ends in 2030.
• The current revenue share of the AI industry in the transportation market is 0%. The revenue share will rise in the year of 2025. It will then stabilize to 40% in the year of 2030.
• 10% is the discount rate in the industry

a. You use linear interpolation to estimate the AI car industry’s revenue share between 2025 to 2030. In 2024 the market share is 0; in 2030, the market share is 40%. From 2025 to 2030 (including 2025 and 2030), the increase in the revenue share relative to the previous year is a constant. What is the AI car industry’s market share as of 2029?
b. What is the AI car industry’s total revenue in 2030?
c. What is the present value of the AI car industry’s total revenue from 2020 to 2030? Discount all cash flows back to the year of 2019 (in billions $)?

Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended February 3, 2018, are - This material also is available under the Investor Relations link at the company's website.
1. On what line of Target's income statement is revenue reported? What was the amount of revenue Target reported for the fiscal year ended February 3, 2018? 2. Disclosure Note 2 indicates that Target generally records revenue in retail stores at the point of sale. Does that suggest that Target generally records revenue at a point in time or over a period of time? Explain. 3. Disclosure Note 2 indicates that customers ("guests") can return some merchandise within 90 days of purchase and can return other merchandise within a year of purchase. How is Target's revenue and net income affected by returns, given that it does not know at the time a sale is made which items will be returned? 4. Disclosure Note 2 indicates that "Commissions earned on sales generated by leased departments are included within sales and were $44 million ... in 2017." Do you think it likely that Target is accounting for those sales as a principal or an agent? Explain.
5. Disclosure Note 2 discusses Target's accounting for gift card sales. Does Target recognize revenue when it sells a gift card to a customer? If not, when does it recognize revenue? Explain. 6. Disclosure Note 4 discussed how Target accounts for consideration received from vendors, which they call "vendor income." Does that consideration produce revenue for Target? Does that consideration produce revenue for Target's vendors? Explain.

The balance sheet includes the following information:

When a firm declares dividends:

For a firm that provides services, revenue is recognized when:

Walmart's 2020 annual report said the following about its gift card sales:

“Customer purchases of gift cards are not recognized as sales until the card is redeemed and the customer purchases merchandise using the gift card.”

When a customer purchases a gift card from Walmart, what impact does this have on Walmart’s financial statements?

Walmart’s 2020 annual report said the following about its gift card sales:

“Customer purchases of gift cards are not recognized as sales until the card is redeemed and the customer purchases merchandise using the gift card.”

When a customer redeems a previously purchased gift card, what impact does this transaction have on Walmart's financial statements?

Identify (3) three revenue management “factors” that will have an impact on a hotel with respect to optimizing revenue generation. Explain and elaborate each concept.

On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $310 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):

Required:
1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion.
2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time.
3. Suppose the estimated costs to complete at the end of 2019 are $120 million instead of $30 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method.

• Required 1
• Required 2
• Required 3

Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)

Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.)

the question is matching

1-Whether a supplier or an entity is responsible for providing the product or service desired by the customer is a strong indicator of the entity’s role in the transaction. If an entity is responsible for fulfillment, including the acceptability of the products or services ordered or purchased by the customer, that fact is

2-Unmitigated general inventory risk is a strong indicator that an entity

3-A similar and equally strong indicator of gross reporting exists if a customer arrangement involves services and

4-If an entity physically changes the product (beyond its packaging) or performs part of the service ordered by a customer, that fact may indicate that the entity

5-If an entity must determine the nature, type, characteristics, or specifications of the product or service ordered by the customer, that fact may indicate that the entity

6-If an entity earns a fixed dollar amount per customer transaction regardless of the amount billed to a customer or if it earns a stated percentage of the amount billed to a customer, that fact may indicate that the entity

7-According to ASU 2014-09, Revenue From Contracts With Customers, … outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and

(Choose the best )

Daily Gross Revenue=766.981 + 2.977 * Daily Tour Income – 12.31 * Number of Tourists

1. Report and interpret of both coefficients of determination.

2. Report and explain the significance of each independent variable in both regressions.

3. Report and explain the significance of both models.

4. Predict y for a fictitious set of x values for both models.

5. Years	Weekend	Daily Tour Income	Number of Tourists=y	Daily Gross Revenue	Total Daily Income
   1	Friday	3378	432	4838.95	8216.95
   1	Saturday	1198	139	3487.78	4685.78
   1	Sunday	3630	467	4371.3	8001.3
   2	Friday	4550	546	6486.48	11036.48
   2	Saturday	2467	198	3437.39	5904.39
   2	Sunday	3593	452	4571.43	8164.43
   3	Friday	898	119	2515.15	3413.15
   3	Saturday	2812	342	5462.11	8274.11
   3	Saturday	2650	321	5498.89	8148.89
   4	Friday	3230	402	5071.14	8301.14
   4	Saturday	4798	523	8051.43	12849.43
   4	Sunday	3253	353	4291.95	7544.95
   5	Friday	2848	347	4545	7393
   5	Saturday	4632	534	8865.01	13497.01
   5	Sunday	3767	412	4710.64	8477.64
   6	Friday	4499	529	10752.74	15251.74
   6	Saturday	3868	422	6435.63	10303.63
   6	Sunday	2489	288	3389.37	5878.37
   7	Friday	3448	367	6129.58	9577.58
   7	Saturday	3612	406	7357.12	10969.12
   7	Sunday	1937	216	2121.76	4058.76
   8	Friday	2548	294	4738.86	7286.86
   8	Saturday	2833	317	4141.98	6974.98
   8	Sunday	2214	284	4878.35	7092.35
   9	Friday	1520	169	4102.49	5622.49
   9	Saturday	4322	462	8639.55	12961.55
   9	Sunday	1833	203	3946.71	5779.71
   10	Friday	2271.63	235	4236.31	6507.94
   10	Saturday	2407.88	266	5613.27	8021.15
   10	Sunday	1772.17	182	5580.17	7352.34
   11	Friday	1494	177	3833.52	5327.52
   11	Saturday	1998	213	3986.57	5984.57
   11	Sunday	1388	165	2721.56	4109.56
   12	Friday	1925	190	3952.19	5877.19
   12	Saturday	2695	243	6281.3	8976.3
   12	Sunday	1525	172	3356.14	4881.14
   13	Friday	1725	187	3822.59	5547.59
   13	Saturday	2450	253	4141.75	6591.75
   13	Sunday	1407.5	173	3312.41	4719.91
   14	Friday	2394	242	4571.5	6965.5
   14	Saturday	3012	311	6363.3	9375.3
   14	Sunday	2058	239	3502.22	5560.22
   15	Friday	2427	267	5881.13	8308.13
   15	Saturday	3189	336	10409.13	13598.13
   15	Sunday	2109	178	4955.05	7064.05
   16	Friday	2244	184	4347.41	6591.41
   16	Saturday	3195	274	4935.17	8130.17
   16	Sunday	1017	114	3486.27	4503.27
   17	Friday	3470	325	6290.99	9760.99
   17	Saturday	5323	478	13132.55	18455.55
   17	Sunday	2345	242	5014.45	7359.45
   18	Friday	1671	177	2740.23	4411.23
   18	Saturday	2321.94	246	4423.31	6745.25
   18	Sunday	1542	182	2650.48	4192.48

Run two different multiple regressions using excel. One should include two of the three idepenedent variables and the other should include all three variables. The first multiple regression equation is Gross Revenue = 766.981 + 2.977*Daily Tour Income - 12.31*Number of Tourists.

1. What is the second multiple regression equation?  

Would adding dummy variables for the three days for my second regression work? l  need 2 dummy variables since I have 3 categories (days, in this case). What would the equation look like? What's the regression table using excel?

An insurance company claims that for x thousand policies, its monthly revenue in dollars is given by R(x)=225x and its monthly cost in dollars is given by C(x)=180x+16,200

A) find the break even point

B) grap the revenue and cost equations on the same axes

C) from the graph estimate the revenue and cost when x=180

In 2018, X Company's revenue was $198,000, its total variable costs were $122,760, and its fixed costs were $92,400. In 2019, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $14,784. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $41,600 after taxes in 2019?