1. Use the data below to find the linear regression equation that best represents the given data and predict the revenue in 2013 (Copy data to Excel)

2. Then create Two new columns that represent the predication y =mx+b for each year and percent of growth for each year = (Revenue/Predication)*100

3. Use Excel to graph the linear model (x-axis years, y-axis revenue) and the linear equation of best fit.

1. Fill out the missing entry for prediction and percent of growth
2. Find the value of the linear correlation coefficient r.
3. Find the equation of the regression line, letting Number of years be the independent (x) variable.
4. Find the coefficient of determination.
5. Find the standard error of estimate s_e.

5. If the buyer of merchandise agrees to pay shipping costs, how is the cost recorded?
6. If the seller of merchandise agrees to pay shipping costs, how is the cost recorded?
7. Why would the seller of merchandise offer a discount for early payment?
8. Payment terms are: 4/10, n/50. What does this mean?
9. If the buyer takes advantage of the discount offered, what will happen to the cost of his/her merchandise?
10. When would the contra revenue account Sales Returns & Allowances be used?
11. When would the contra revenue account Sales Discount be used?
12. How will the two contra revenue accounts (in #10 and #11) affect sales?
13. What kind of account is inventory?
14. How is the inventory account adjusted?
15. For each account below, indicate whether it is a permanent account or temporary account:

a. Cost of Goods Sold
b. Sales Revenue
c. Sales Discount
d. Sales Returns & Allowances
e. Inventory

The ledger of Marco Rentals on 30 June 2019 includes the following selected accounts before adjusting entries have been prepared:

An analysis of the accounts shows the following adjustments that need to be made:

1. The equipment depreciates $3250 per month.
2. The rent revenue received in advance was for 9 months commencing 1 June.
3. Interest of $1950 is accrued on the bank loan.
4. Supplies on hand total $5600.
5. The benefits of prepaid insurance expire at the rate of $2340 per month.

Required

a)     Prepare the adjusting entries at 30 June 2019.

b)    Determine the adjusted balances of the following general ledger accounts at 30 June 2019. (Total 15 Marks)

Evaluating customer profitability

You own a credit card company. You want to evaluate the profitability of customers A and B.

The only source of revenue from customers is the interest that you charge on credit card balances. You charge customers an interest rate of 10%. Thus, if the credit card balance is $1,000, revenue is $1000*0.1=$100.
Variable costs are zero for simplicity. From your ABC system, the activity rates are $0.25 per transaction and $2 per customer-support call.

a) Compute revenue, costs, and profit margin for each customer.

Enter negative numbers with a minus sign, i.e., a loss of $200 should be entered as -200, not as (200) or ($200).

Multiple step income statement

The company's total shareholders' equity as of 12/31/2020 is $1,777,000Common stock; par value of $2; Auth 500,000 and issued/outstanding 100,000 @ an average issue price of $4.75. Accumulted other comprehensive income is $180,000. The balance in shareholders' equity is retained earnings.

During 2021: Sales revenue $880,000, interest revenue $30,000 ; rent revenue $160,000; Dividend Revenue $80,000; sales Returns & Allowances $25,000; Sales discounts $70,000; COGS $350,000; Selling exp $100,000; General Administrative expenses $80,000; Interest expense $70,000; Loss on sale of Investments $60,000; Restructuring Costs $75,000; Gain on sale of compenant that qualifies as a discontinued ops $150,000; Write down of inventory $50,000; foreign currency translation gain $20,000; unrealized gain in value of land $50,000;.Unrealized gain in the value of patents $50,000; unrealized loss in value of available for sale securities $60,000

Prepare a statement of comprehensive income utilizing the multiple step income statement approach

A statistical program is recommended. You may need to use the appropriate appendix table or technology to answer this question.

The owner of a theater would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

(a)

Find an estimated regression equation relating weekly gross revenue (in thousands of dollars) to television and newspaper advertising (in thousands of dollars). (Let x₁ represent television advertising, x₂ represent newspaper advertising, and y represent weekly gross revenue. Round your numerical values to two decimal places.)

ŷ =

Plot the standardized residuals against ŷ.

does the residual plot support the assumptions about ε? Explain

Jobs R Us, Inc. is a recruiting firm that specializes in post – college placement in the finance industry. Its clients are currently concentrated in the North-Eastern United States. It is contemplating expanding into the Mid-West and accesses the risk of the new venture to be similar to that of the existing company.

Your RBS summer intern created a summary for Jobs R Us, Inc. potential in the Midwest market over the next 5 years:

Revenue is expected to be $7,500,000 in the first year and grow 8% per year for the next 4 years.

Variable cost is expected to be 45% of revenue.

Fixed cost (including depreciation) is expected to be $1,250,000 of revenue each year.

Depreciation expense is expected to be $75,000 each year.

Maintenance capex is expected to be $150,000 each year.

Change in Net working capital is expected to be $100,000 in year 1, growing at the same percentage as revenue thereafter.

Taxes are 40%.

Initial investment today is estimated to be $2,500,000.

After tax cost of capital is 12%

What is the NPV?

(answer in millions. round to 1 decimal)

Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 3,900 tenant-days, but its actual level of activity was 3,880 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Actual results for February:

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to:

1. In perfect competition...

a. each firm is a large part of the industry

b. the price equals the marginal revenue

c.a firm profit maximizes where total revenue equals total variable cost

d. firms use advertising to differentiate products

2. In monopoly...

a. the marginal revenue is greater than the average revenue

b. abnormal profits can be earned in the long run

c. firms are allocatively efficient

d. firms produce where average costs equal marginal costs

3. When a firm charges a different price for the same product this is called:

a. Price discrimination

b. Price differentiation

c. Price determination

d. Price distinction

3. If a business is charging different prices depending on demand conditions, it will have the highest price when the price elasticity of demand is:

a. - 2

b. - 5

c. - 0.8

d. - 0.01

4. Which of the following is NOT a barrier to entry?

a. patents

b. the need for a licence to operate

c. low economies of scale

d. well established brands

On June 15, 2016, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $310 million. The expected completion date is April 1, 2018, just in time for the 2018 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2016 2017 2018 Costs incurred during the year $ 70 $ 60 $ 30 Estimated costs to complete as of December 31 130 30 — Compute the revenue and gross profit will Sanderson report in its 2016, 2017, and 2018 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. Compute the amount of revenue and gross profit or loss to be recognized in 2016, 2017, and 2018 using the completed contract method. Suppose the estimated costs to complete at the end of 2017 are $120 million instead of $30 million. Compute the amount of revenue and gross profit or loss to be recognized in 2017 using the percentage of completion method.