P. 4-2

For each of the following indicate the amount of revenue that Beanville should recognize in its 2020 (1) government‐wide statements and (2) governmental fund statements. Provide a brief justification or explanation for your responses.

1. The state in which Beanville is located collects sales taxes for its cities and other local governments. The state permits small merchants to remit sales taxes quarterly. The state sales tax rate is 6 percent. In December 2019, city merchants collected $50 million in sales taxes that they remitted to the state on January 15, 2020. The state, in turn, transferred the taxes to the city on February 15, 2020.
2. In December 2019, the federal government awarded Beanville a reimbursement grant of $500,000 to train law‐enforcement agents. The city had applied for the grant in January of that year. The city may incur allowable costs any time after receiving notification of the award. In 2020, the city incurred $400,000 in allowable costs and was reimbursed for $350,000. It was reimbursed for the $50,000 balance in February 2021. In January and February 2021, it incurred the remaining $100,000 in allowable costs and was reimbursed for them in April 2021.
3. In December 2019, the city levied property taxes of $1 billion for the calendar year 2020. The taxes are due on June 30, 2020. The city collected these taxes as follows:

December 2019                                                                                                                                 $56 million

January 1, 2019, to December 31, 2019    $858 million

January 1, 2020, through March 31, 2020 ($18 million per month) $54 million

Total                                                                                                                                                    $968 million

It estimates the balance of $32 million would be uncollectible. In addition, in the period from January 1 through February 28, 2020, the city collected $16 million in taxes that were delinquent as of December 31, 2019. In the period March 1 through June 30 2020, the city collected $8 million of taxes that were also delinquent as of December 31, 2019.

4. In December 2020 Beanville sold a city‐owned warehouse to a private developer. Sales price was $4.2 million. The warehouse had cost $4 million when it was acquired 10 years earlier. It had an estimated useful life of 40 years (with no salvage value).
5. In December 2020, Beanville's city‐owned radio station held its annual fund drive. A local business offered to match all pledges made on December 2, 2020, up to $50,000, assuming that the amount pledged was actually collected. Based on past experience the city estimates that 90 percent of the pledges will actually be collected. By year‐end 2020, the city had collected $25,000 of the pledges, and in January and February it collected an additional $15,000. It received $25,000 of the matching funds on February 15, 2021. Respond with respect only to the $50,000 in matching funds.

Describe how the following types of revenue are reported on the Income Statement:

a...Discounts from Charges

b...Charity care

c...Bad Debt Losses

What do you think is the significance behind this reporting method?

A store finds that its sales revenue changes at a rate given by S'(t) = −30t2 + 380t dollars per day where t is the number of days after an advertising campaign ends and 0 ≤ t ≤ 30. (a) Find the total sales for the first week after the campaign ends (t = 0 to t = 7). $

(b) Find the total sales for the second week after the campaign ends (t = 7 to t = 14). $

The Internal Revenue Service reports that the mean federal income tax paid in the year 2010 was $8040. Assume that the standard deviation is $4600. The IRS plans to draw a 1000 sample of tax returns to study the effect of new tax law.

A) What is the probability that the sample mean tax is less than $8100? Round the answer to at least four decimal places. The probability that the sample mean tax is less than $8100 is...?

B) What is the probability that the sample mean tax is between $7500 and $8100? Round the answer to at least four decimal places. The probability that the sample mean tax is between $7500 and $8100 is...?

C) Find the 70^th percentile of the sample mean. Round the answer to at least two decimal places.

D) Would it be unusual if the sample mean were less than $7800? Round answer to at least four decimal places. It would/would not be unusual because the probability of the sample mean being less than $7800 is...?

E) Do you think it would be unusual for an individual to pay a tax of less than $7800? Explain. Assume the variable is normally distributed. Round the answer to at least four decimal places. Yes/No, because the probability that an individual pays a tax less than $7800 is...?

When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because

1. Which is the largest source of revenue for the Federal government? California State government?

2. What item takes the largest share of the federal government spending? State government spending?

3. What is the most recent outstanding national debt of United States? Assuming a 340 million population in United States, what is the per capita debt of United States?

4. Why are taxes on common items such as gasoline and toiletries considered highly regressive? Explain clearly.

Research project: The impact of information technology on the revenue cycle activities, threats, and controls Search popular business and technology magazines (BusinessWeek, Forbes, Fortune, CIO, etc.) to find an article about innovative use of IT that can be used to improve one or more activities in the revenue cycle. Write a report that: A. Explains how IT can be used to change revenue cycle activities. B. Discusses the control implications. Refer to table 12.1(page 357) and explain how the new procedure changes the threats and appropriate control procedures for mitigating those threats.

To reduce the national debt, there must be the consensus about raising taxes (revenue), reducing spending, or both simultaneously. If taxes increase, your net pay will decline, leaving you with less disposable income. Are you more of a fiscal conservative (the federal government should spend less) or a fiscal liberal (the federal government should spend more)? Identify the federal budget items that you would spend more or less on in the budget. Explain why.

(b) For a study of TV shows, you obtain the rating, market share, and advertising revenue for 95 popular TV shows.
Which of these are statistical questions that could be answered from this data set? (Check all that apply.)

*Does the market share of TV shows differ based on the gender of viewers?

*For all TV shows on network television, what percentage have ratings of 5.0 or lower?

*What is the distribution of ratings for the 95 shows in this sample?

*Is there a relationship between the rating and advertising revenue of the 95 shows in this sample?

*Which of the 95 popular shows in this sample would you rate the highest?

Refer to the TV Revenue data set. Perform a complete multiple regression analysis that might be used to predict net revenue using all provided explanatory variables (there are 4 explanatory variables). Complete all steps for the multiple regression as outlined in class and modify the original model if necessary. Use an alpha = .10 for all hypotheses tests. Make sure you show each required step for any hypothesis test. Provide all required Minitab output with your written responses.