When the relationship between two or more independent variables needs to be tested, a common tool to use is a regression analysis. Take, for example, a study that shows the relationship between gaming and teen violence or a study that shows a correlation between fast-food eating habits and obesity. Complete the following for this assignment

Describe 2–3 combinations of independent and dependent variables that you could test using a regression analysis.

What types of results could the regression analysis yield? How could you use the knowledge gained from the test?

Describe a specific organizational application of correlation and regression that you will use in your future career.

Describe a situation in your current or former workplace for which it would be appropriate to use correlation and regression to predict a future outcome that the company may be interested in. If you do not have an example for your workplace, please substitute a company that you are familiar with instead.

Why do you believe it is important for the company to look at these variables? What does the company risk if it does not do this correlation/regression?

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on January 1 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $880,000. San Antonio paid $240,000 and signed a noninterest bearing note requiring the company to pay the remaining $640,000 on January 1, 2020. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $24,000 were paid at closing.

During January, the old building was demolished at a cost of $74,000, and an additional $54,000 was paid to clear and grade the land. Construction of a new building began on February 1 and was completed on December 1. Construction expenditures were as follows:

February 1 $ 1,800,000

April 30 2,400,000

July 1 800,000

November 1 1,200,000

San Antonio borrowed $4,500,000 at 9% on February 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

$2,500,000, 10% long-term note payable

$5,500,000, 7% long-term bonds payable

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $640,000. The fair values of the equipment and the furniture and fixtures were $555,000 and $185,000, respectively. In December, San Antonio paid a contractor $305,000 for the construction of parking lots and for landscaping.

Required:

1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.

2. How much interest expense will San Antonio report in its 2018 income statement?

At January 1, 2020, the credit balance of Cheyenne Corp.’s Allowance for Doubtful Accounts was $406,500. During 2020, the bad debt expense entry was based on a percentage of net credit sales. Net sales for 2020 were $80 million, of which 89% were on account. Based on the information available at the time, the 2020 bad debt expense was estimated to be 0.80% of net credit sales. During 2020, uncollectible receivables amounting to $500,000 were written off against the allowance for doubtful accounts. The company has estimated that at December 31, 2020, based on a review of the aged accounts receivable, the allowance for doubtful accounts would be properly measured at $525,500.

Prepare a schedule calculating the balance in Cheyenne Corp.’s Allowance for Doubtful Accounts at December 31, 2020.

Prepare any necessary journal entry at year end to adjust the allowance for doubtful accounts to the required balance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Read the extract below and answer the questions that follow. [20 marks] Steinhoff Accounting Scandal The Steinhoff accounting scandal has raised concern on a number of levels, from the quality of corporate governance to checks and balances in the investment management business and even race relations in SA, writes Legalbrief. Two separate articles on The Conversation site explore the gaps exposed by Steinhoff’s fall from grace and also the lessons to be learnt from the debacle that threatens to wipe out billions of rand belonging to SA investors. Interviewed in the first piece, Jannie Rossouw, head of the School of Economic & Business Sciences at Wits University, notes: ‘The Steinhoff scandal is disturbing because it points to a serious gap in the checks and balances in the investment management space. A scandal of this magnitude should not have occurred if the systems with their multiple layers were working. This includes auditors, asset managers and non-executive directors who in their different roles should ensure that the company’s accounts are as close to the truth as possible.’ Rossouw asks why most fund and asset managers in SA and across the globe, which draw enormous fees, failed to pick up the alleged irregularities. He notes that every time a major scandal surfaces, regulatory gaps are identified and new measures are put in place to plug the apparent holes. But the scandals keep coming. He notes, however, that it’s impossible to regulate for integrity and ethical behaviour. ‘The one effective way that behaviour can be changed is through legal process and by means of tough punishment.’ The scandal would do SA a huge service if it made the point that corruption and mismanagement have nothing to do with race, Steven Friedman, professor of political studies at the University of Johannesburg, notes in a second article on The Conversation site. Friedman says it would also help if it alerted everyone in the marketplace to watch as carefully over private companies as they do over government MODULE BUSINESS AND SOCIETY TOTAL MARKS 20 MARKS departments. He writes: ‘But, given how entrenched racial attitudes are, it is more likely that it will be dismissed as a once-off freak by those who assume that white-led business is always competent and as further evidence of white prejudice by black people reacting to the label often stuck to them. If that happens, some private businesses will continue to get away with behaviour which would never be tolerated in government.’ Steinhoff’s woes continue to pile up. A Fin24 report says Steinhoff International Holdings, the group’s Amsterdam-registered parent company, announced last week in an investor update that more of its already-published financial results would need to be restated and could not be relied on. Steinhoff last month said that its 2017 audited results had been put on hold while PwC conducts an independent investigation into ‘accounting irregularities’. It has also previously warned investors to not rely on the figures contained in its 2016 results. Last week, it added the 2015 financial results of Steinhoff International Holdings Propriety Limited, the conglomerate’s former listed umbrella holding company, could not be relied on. The former Steinhoff CEO Markus Jooste left his mentor and business partner Christo Wiese on the hook for more than R200m is mentioned to a great detail in a Moneyweb report. It says the papers filed before the Western Cape High Court last month by Absa bank to have Jooste’s Mayfair Speculators liquidated reveal how he removed nearly all the assets from the company before leaving Wiese on the hook for more than R200m. The report notes that in December 2016, Mayfair, represented by Jooste’s son-in-law Stefan Potgieter, and Absa concluded a financing arrangement, which saw the bank providing Mayfair with an overdraft facility amounting to R335.6m and bank guarantees of a further R14.4m (in total R350m). Matter unravelled quickly following the upheaval on 6 December last year, when Jooste resigned as CEO. The Steinhoff share price collapsed, leaving Mayfair in breach of its loan agreement. Moneyweb says the court papers reveal that Upington Investment Holdings, Wiese’s investment vehicle for his share in Steinhoff, stood behind any and all Mayfair’s obligations up to R350m.

Source: (legalbrief.co.za/diary/legalbrief-forensic/story/steinhoff-scandal-raises-thorny.../pdf/date of accession July 30th 2019)

Question1
Does the Steinhoff case represent a failure in terms of Corporate Governance? Explain.

Question 2
Define Corporate Governance. Elaborate on the measures to prevent fraud in line with the Sarbanes-Oxley Act.

Question 3

Mention the recommendations for improving the system of setting compensation levels in
companies.

The following information relates to R-U Ready Company, a publicly traded company:

1. R. U. Ready acquired Machine B on 1/1/13 by signing a 9% installment note to be paid in 5 equal installments of $65,000. Each payment is due on 12/31, with the first payment due 12/31/13. The useful life of Machine B is 8 years with no residual value. Assume double declining balance depreciation.

Requirement:

Present the accounts and dollar amounts that would appear on comparative balance sheets and income statements for the years ending 12/31/16 and 12/31/15.

List all accounts and dollar amounts. Round dollar amounts to the nearest dollar. You do not need to include cash.  

• For the Classification (Class) column of the Balance Sheet use:
• A for Asset
• L for Liability
• E for Equity

For the Classification (Class) column of the Income Statement use:

• R for Revenue
• E for Expense

A distance runner tears a tendon and cannot continue to be competitive. The now former runner wants to switch over to weight training and ultimately become competitive in that area. Do they have a chance? Explain your answer based on what you know about the three types of muscle tissue and how they operate.

Problem 8.3

In 1693, Samuel Pepys, a former Member of Parliament and Secretary to the Admiralty, had to write to Isaac Newton to solve a problem that you are well-equipped to solve yourself. The problem was:

Which of the following three propositions has the greatest chance of success?

A. Six fair dice are tossed independently and at least one “6” appears.

B. Twelve fair dice are tossed independently and at least two “6”s appear.

C. Eighteen fair dice are tossed independently and at least three “6”s appear.

QUESTION BEGINS HERE

To establish a common notation for the parts below, define the following random variables:

- W: number of times 6 appears in 6 tosses of a fair 6-sided die

- X: number of times 6 appears in 12 tosses of a fair 6-sided die

- Y : number of times 6 appears in 18 tosses of a fair 6-sided die

Then we have events A = {W ≥ 1}, B = {X ≥ 2}, and C = {Y ≥ 3}.

(a) Write exact expressions for P[A], P[B], and P[C]. (You do not need to simplify each answer to a number.)

(b) Many slightly different CLT-based approximations for the three probabilities are justifiable. Write a set of CLT-based approximations where you get the same result for each of the three probabilities. (Roughly speaking, the equality of these approximations is probably related to why Pepys found the situation puzzling.)

(c) Write approximate expressions for the three probabilities using the De Moivre–Laplace formula.

(d) Evaluate the expressions in parts (a) and (c) above using a software tool (MATLAB, Python, or something similar). Include your code and results.

(e) Again using the software tool of your choice, make a plot that shows the CDFs of W, X/2, and Y/3. On the same plot, show the CDF of the Gaussian approximation for these random variables. Finally, use this plot to explain the relative ordering of your answers to parts (a) and (

Christie sued a former client for slander and defamation she suffered on the job in 2018. As a result of the injury, she was partially disabled. In 2019, she received $350,000 for her loss of future income, $190,000 in punitive damages because of the employer’s flagrant disregard for the employee’s safety, $130,000 due to emotional distress from the injury, and $17,000 for medical expenses. The medical expenses were deducted on her 2018 return, reducing her taxable income by $12,000. Compute Christie’s gross income from these transactions in 2019.

** ignore the $17,00 for medical expense

In the 1990s politicians in Washington D.C. were looking for ways to balance the budget. Former Federal Reserve Chairman Alan Greenspan brought attention to the importance of the Consumer Price Index (CPI) and its link to cost-of-living adjustments (COLAs) in several areas of the federal budget--most notably Social Security. Alan Greenspan argued that the CPI overstated inflation and thus led to unjustified COLAs. According to Alan Greenspan, these unjustified COLAs therefore increased the deficit, and if the overstatements in the CPI were corrected this would contribute to balancing the budget.

The Senate Finance Committee created the Boskin Commission in the 1990s to examine possible overstatements of the CPI. The commission came out with its estimate that the CPI overstated inflation by 1.1%.

Answer the following questions:

1. If the Boskin Commission's estimate was right and the CPI overstates inflation by 1.1 % every year--what does that say about real GDP per capita and living standards in general in the United States, which are affected by the CPI ?

2. What are some of the sources of this possible overstatement of the CPI, which is calculated by the Bureau of Labor Statistics?

7. Jeff, the manager of HiQ DVD and former president of the Guild of Graduates (UWI), seeks your expert advice. He has given you the following information: when he charged a price of $10, approximately 4,000 DVD were sold, however, when the price increased by 10% the demand decreased by 1,000 units (DVD). Jeff wants to know the following (based on operating cost of $7 per DVD):

a) What is the MR?

b) What price would maximize profit?

c) What impact would a price decrease have on revenue?