f. Refer to Apple’s revenue recognition footnote. In particular, when does the company recognize revenue for the following types of sales?

i. iTunes songs sold online.

ii. Mac-branded accessories such as headphones, power adaptors, and backpacks sold in the Apple stores. What if the accessories are sold online?

iii. iPods sold to a third-party reseller in India.

1. Interpret the tables trend for revenue, expense & dividend year by year comparing both company?

Please use ONLY one Excel file to complete this case study, and use one spreadsheet for each problem.

1. Develop a linear regression model to predict Wal-Mart revenue, using CPI as the only independent variable.
2. Develop a linear regression model to predict Wal-Mart revenue, using Personal Consumption as the only independent variable.
3. Develop a linear regression model to predict Wal-Mart revenue, using Retail Sales Index as the only independent variable.
4. Which of these three models is the best?  Use R-square values, Significance F values, p-values and other appropriate criteria to explain your answer.
5. Generate a scatter plot, residual plot and normal probability plot for the best model in part (d) and comment on what you see.

Identify and remove the five cases corresponding to December revenue.

6. Develop a linear regression model to predict Wal-Mart revenue, using CPI as the only independent variable.
7. Develop a linear regression model to predict Wal-Mart revenue, using Personal Consumption as the only independent variable.
8. Develop a linear regression model to predict Wal-Mart revenue, using Retail Sales Index as the only independent variable.
1. Which of these three models is the best?  Use R-square values and Significance F values to explain your answer.
10. Generate a scatter plot, residual plot and normal probability plot for the best model in part (i) and comment on what you see.
11. Comparing the results of parts (d) and (i), which of these two models is better? Use R-square values, Significance F values, p-values, scatter plot, residual plot and normal probability plot to explain your answer.

Microsoft historically followed the practice of recognizing 25% of revenue from its Windows software over three or four years as it promises future upgrades and addons. With the launch of Vista in 2008, it changed the policy to record most of the revenue in the period in which the software was sold. In the third quarter for fiscal year 2008, Microsoft reported an increase in earnings of 65%. The increase came from sales of the new Vista program and also from the acceleration in revenue recognition.

Critically evaluate the revenue recognition policy adopted by Microsoft in accordance with AASB15 Revenue from Contracts with Customers.

2) Explain the decision of management to change the revenue recognition policy in terms of the debt hypothesis of Positive Accounting Theory.

500 words max

The Indonesian government issued a government bond in 2004, with a maturity of 20 years, the coupon rate is 13%. Currently (the year 2014), the Indonesian government issues government bonds with a maturity of 20 years with a coupon rate of 8%. Note, that the coupon rate decreases from 13% to 8%. Calculate the fair value for the first bond (issued in 2004, and will mature in 2024). The par is 1,000,000 and the yield is 13%

CCN and ActMedia provided a television channel targeted to individuals waiting in supermarket checkout lines. The channel showed news, short features, and advertisements. The length of the program was based on the assumption that the population mean time a shopper stands in a supermarket checkout line is 7.6 minutes. A sample of actual waiting times will be used to test this assumption and determine whether actual mean waiting time differs from this standard.

A. A sample of 140 shoppers showed a sample mean 8.5 waiting time of minutes. Assume a population standard deviation of 3.6 minutes. What is the z-value and the p-value?

B. Compute a 95% confidence interval for the population mean. Does it support your conclusion?

Wall Street securities firms paid out record year-end bonuses of $125,500 per employee for 2005 (Fortune, February 6, 2006). Suppose we would like to take a sample of employees at the Jones & Ryan securities firm to see whether the mean year-end bonus is different from the reported mean of $125,500 for the population.

A. Suppose a sample of 40 Jones & Ryan employees showed a sample mean year-end bonus of $118,000. Assume a population standard deviation of $25,000 and compute the p-value (to 4 decimals).

B. Using a= .05, what is the test statistic?

You buy a share of stock, write a one-year call option with strike X, and buy a one-year put option with same strike X. You know that stock shares are currently traded at the same price as the strike price of the options, i.e. options are at the money and S=X. Your net outlay to establish the entire portfolio is $30. Risk-free interest rate is 3%

-What must the strike price X be? The stock pays no dividends.

- Find the one-year stock futures price.

- Which of the above two same strike options should be more expensive

- Given that one-year put option with same strike X is traded at $3. Find the value of call option with the same strike and maturity.

ABC company issued bonds on January 1, 2006. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2021. What is the yield to maturity for these bonds on January 1, 2012 if the market price of the bond on that date is $950?

(i) Describe and interpret the assumptions related to the problem. (ii) Apply the appropriate mathematical model to solve the problem. (iii) Calculate the correct solution to the problem

Show all work please.

1. Certain standardized math exams have a mean of 100 and a standard deviation of 60. Of a sample of 36 students who take this exam, what percent could you expect to score between 70 and 110?

A) 84

B) 81.5

C) 83.85

D) 85

2. Certain standardized math exams had a mean of 120 and a standard deviation of 20. Of students who take this exam, what percent could you expect to score between 60 and 80?

A) 2.5

B) 2.35

C) 97.5

D) 13.5

3. A random sample of n measurements was selected from a population with unknown mean μ and known standard deviation σ. Using the 68-95-99.7 rule, calculate a 68% confidence interval for μ for the given situation. Round to the nearest hundredth when necessary.
n = 100, Xbar = 74, σ = 25

4.Certain standardized math exams have a mean of 100 and a standard deviation of 60. Of a sample of 36 students who take this exam, what percent could you expect to score above 90?

A)84

B)81.5

C)83.85

D)16