The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue () as a function of television advertising () and newspaper advertising ().

The estimated regression equation was .

The computer solution provided .

a. Compute  (to 3 decimals).

Compute  (to 3 decimals).

b. When television advertising was the only independent variable,  and . Are the multiple regression analysis results preferable?

- Select your answer -No, because less variability is explained when both independent variables are usedYes, because greater variability is explained when both independent variables are usedItem 3

It is customary to think about investments as falling into one of three groups: revenue-enhancing, cost-reducing, and mandatory describe what each of these categories mean and give an example.

1) The fixed costs at Harley Motors are $1 million annually. The main product has revenue of $8.50 per unit and $4.25 variable cost. Determine the following:

(a) Breakeven quantity per year.

(b) Annual profit if 200,000 units are sold and if 350,000 units are sold.

According to the Internal Revenue Service, income tax returns one year averaged $1,332 in refunds for taxpayers. One explanation of this figure is that taxpayers would rather have the government keep back too much money during the year than to owe it money at the end of the year. Suppose the average amount of tax at the end of a year is a refund of $1,332, with a standard deviation of $725. Assume that amounts owed or due on tax returns are normally distributed.

(a) What proportion of tax returns show a refund greater than $2,200?
(b) What proportion of the tax returns show that the taxpayer owes money to the government?
(c) What proportion of the tax returns show a refund between $140 and $660?

(Round all the z values to 2 decimal places. Round your answers to 4 decimal places.)

(a) P(x > $2,200) =

(b) P(x < 0) =

(c) P($140 ≤ x ≤ $660) =

The following independent situations require professional judgement for determining when to recognize revenue from the transactions.

o Bear Paw Airlines sells you an advance purchase airline ticket in September for your flight home at Christmas.

o Future Shop Ltd. sells you a home theatre on a “no money down, no interest, and no payments for one year” promotional deal.

o The Blue Birds baseball team sells season tickets to games on-line. Fans can purchase the tickets at any time, although the season doesn't officially begin until April. It runs from April through October.

o River's Run Ltd. sells you a sweater. In August, you placed the order using River's Run's on-line catalogue. The sweater arrives in September and you charge it to your River's Run credit card. You receive and pay the credit card bill in October.

Required

1. Explain when revenue is recognized in each of these situations under ASPE.

2. Explain the new IFRS 15 model. Would the timing of revenue be the same under IFRS 15 as was given under ASPE for each of the 4 scenarios?

For each of the following independent items, indicate when revenue should be recognized

h. Selling undeveloped lots for future retirement homes in a western province, with very low down payment and long-term payment contracts.

i. Sale of a two-year parking permit by a parking garage, with one-half the sale price received at the time of the sale, and the remainder to be received in equal monthly payments over the period of the permit.

j. A fixed-price contract with the government to design and build a prototype of a space arm; the costs to complete the project cannot be reliably estimated. The government owns the arm throughout the contract.

k. A silver-mining company produces one million ounces of silver but stores the silver in a vault and waits for silver prices to increase.

1 domimant retailer is considering a project whose data are shown below. revenue and cash operating expenses are expected to be constant over the roject's 5 year expected operating life annual sales revenue is 90000 and cash operating expense are 37000 per year. the new equipment cost and depeciable basis is 125,000 and it will depreciated but can be sold for 8000. in addition, the new equipment requires an additional 5000 of net operating working capital, which can be fully recovered at the end of the project. the new equipment is expected to be sold for 10995 at the end of year 5. the marginal tex rate is 28%

-what is year 3 net operating cash flow?
-what is the terminal year non-operating cash flow at the end of year 5?
-what is the NPV of the project if Dominant WACC is 12%

need this in 20 mins

1. The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

1. Develop an estimated regression equation in Excel with the amount of television advertising as the independent variable
2. Develop an estimated regression equation in Excel with both television advertising and newspaper advertising as the independent variables
3. Develop an estimated regression equation in Excel with all three independent variables: television advertising, newspaper advertising, and radio advertising
4. Is the estimated regression equation coefficient for television advertising expenditures the same in par a), in part b) and in part c)? Interpret the coefficient in each case
5. Obtain and compare the multiple coefficient of determination and the adjusted multiple coefficient of determination for parts a), b) and c). How does the coefficient of determination changes as a result of adding more independent variables in the equation?
6. What is the estimate of the weekly gross revenue for a week when $3500 is spent on television advertising, $1800 is spent on newspaper advertising, and $350 in radio advertising?
7. Use the F test to determine the overall significance of the relationship. What is the conclusion at the .05 level of significance?
8. Use the t test to determine the significance of each independent variable. What is your conclusion at the .05 level of significance?
1. Determine the sample correlation coefficient between all possible pairs of independent variables to measure multicollinearity. Is there any value high enough to predict any potential problem in the regression model? Explain

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Consider whether the following transactions qualify under Internal Revenue Code Section 351:

(a) A and B are unrelated individuals. A forms Newco, Inc. on January 2 of the current year by transferring a capital asset with a basis of $10,000 and a value of $50,000 for all 50 shares of Newco common stock. On March 2, in an unrelated transaction, B transfers a capital asset with a basis of $1,000 and a value of $10,000 for 10 shares of Newco nonvoting preferred stock (that is not nonqualified preferred stock).

(b) Same as (a), above, except the transfers by A and B were part of a single integrated plan.

(c) Same as (b), above, except A transferred 25 of her 50 shares to her daughter, D as a gift on March 5 (three days after B’s transfer). What if A’s gift to D were on January 5?

(d) Same as (b), above, except that two months after B’s transfer, A sold 15 shares to E pursuant to a preexisting oral understanding, without which Newco would not have been formed.

How you can minimize expenses and maximise revenue of your business? Explain why it is difficult for you some time as a manager to minimize cost in business.