a) A telecommunications company enters into a contract with a customer. Under the contract, the company promises to provide to the customer 4 GB data, 300 minutes of talk time, and 500 texts for $36.
Required:
Briefly explain how the telecommunications company should account for the contract under NZ IFRS 15. You need to refer to the relevant requirements but not to any specific paragraph of NZ IFRS 15.
b) A company sells mobile phone sets for $99 each. The company’s cost of each phone set is $70. The phone set became very popular with its customers. Near
the end of the financial year, 5000 customers purchased the phone set from the company. The company allows its customers to return the phone set within 14
days if they have not unpacked the set. The return period has not expired for any phone set sold by the end of the year. The company expects, based on its
past experience, that 1% of its customers will return the phone set.
Required:
i) Prepare the journal entries in the books of the company to record the transaction.
ii) Explain why the transaction is recorded in this manner using NZ IFRS 15 requirements.
In: Accounting
Stock Market Valuation and Success - IPO
The business I’ve chosen is DocuSign Inc (DOCU). The company makes software for digitally signing documents, and has been on CNBC’s list of startups revolutionizing the technology industry three times. They went public in April 2018 after raising $629.3 million in IPO. The stock opened at $38 per share, above the estimates of between $24 and $26 per share, and closed at $39.73 per share. DocuSign planned to offer 16.1 million shares but initially sold 21.7 million shares giving them a total of 152.1 million shares, valuing the company at $4.41 billion, which is above the original $3 billion valuation estimated. The IPO money has been spent on major investments in infrastructure and security, and creating a company culture that’ll attract top talent (Novet, 2018).
The market at the time seemed very favorable for the tech company’s. DocuSign was the eighth cloud based company to go public in 2018 following Dropbox and Zscaler Inc. In recent years leading up to going public in 2018 the company struggled with revenue loss, but its revenue has risen 39% overall. The revenue losses have been $52 million for the fiscal year ending 2017, $115 million in 2016, and $123 million in 2015. In good news for shareholders the revenue in fiscal year 2019 was over $700 million and the company grew 35%. There was some fear the company may not be profitable in the future because most of their revenue is from customer subscriptions, but they’ve done a good job at partnering with companies to use their services creating more revenue, and more profit value for shareholders (Bary, 2018).
For Chegg: explain whether you agree or disagree with the above assessments of my Selected IPO that occurred in the last five years . Can you identify additional economic and market factors that may have influenced the results of the IPO?
In: Finance
Find the measures of center for following. Data Frequency 30 - 34 11 35 - 39 18 40 - 44 13 45 - 49 9 50 - 54 8 55 - 59 5 60 - 64 3 65 - 69 0 70 - 74 2
In: Statistics and Probability
On January 1, Year 1, Jing Company purchased office equipment that cost $15,700 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,800. The equipment had a five-year useful life and a $6,200 expected salvage value. Assume that Jing Company earned $21,400 cash revenue and incurred $13,500 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $10,400. What is the company’s net income (loss) for Year 3?
($1,620)
$5,320
$2,820
$4,680
In: Accounting
Comprehensive Accounting Cycle Review 11-2 (Part Level Submission)
Karen Noonan opened Metlock Inc. on February 1, 2017. During February, the following transactions were completed:
| Feb. 1 | Issued 4,000 shares of Metlock common stock for $15,600. Each share has a $1.50 par. | |
| 1 | Borrowed $6,600 on a 2-year, 6% note payable. | |
| 1 | Paid $10,820 to purchase used floor and window cleaning equipment from a company going out of business ($3,960 was for the floor equipment and $6,860 for the window equipment). | |
| 1 | Paid $260 for February Internet and phone services. | |
| 3 | Purchased cleaning supplies for $1,180 on account. | |
| 4 | Hired 4 employees. Each will be paid $580 per 5-day work week (Monday– Friday). Employees will begin working Monday, February 9. | |
| 5 | Obtained insurance coverage for $11,040 per year. Coverage runs from February 1, 2017, through January 31, 2018. Karen paid $2,760 cash for the first quarter of coverage. | |
| 5 | Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $4,740 cash. | |
| 16 | Billed customers $4,680 for cleaning services performed through February 13, 2017. | |
| 17 | Received $468 from a customer for 4 weeks of cleaning services to begin February 21, 2017. | |
| 18 | Paid $360 on amount owed on cleaning supplies. | |
| 20 | Paid $3 per share to buy 300 shares of Metlock common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. | |
| 23 | Billed customers $5,160 for cleaning services performed through February 20. | |
| 24 | Paid cash for employees’ wages for 2 weeks (February 9–13 and 16–20). | |
| 25 | Collected $3,000 cash from customers billed on February 16. | |
| 27 | Paid $260 for Internet and phone services for March. | |
| 28 |
Declared and paid a cash dividend of $0.30 per share. |
a.) Journalize the February transactions.
b.) Post to Ledger Accounts
c.) Prepare Trial Balance
In: Accounting
A call option of non-divided paying stock is traded at price of
$5. The current spot price of this stock is $50. The call has a
six-month maturity and a strike price of $52. The risk-free rate of
return is 3.9%. What would be the price of a put on the same stock,
maturity and strike price that of the call?
5
6
4
3
In: Finance
|
The Downtown Parking Authority of Tampa, Florida, reported the following information for a sample of 232 customers on the number of hours cars are parked and the amount they are charged. |
| Number of Hours | Frequency | Amount Charged | ||||
| 1 | 20 | $ | 3 | |||
| 2 | 37 | 7 | ||||
| 3 | 49 | 10 | ||||
| 4 | 39 | 17 | ||||
| 5 | 33 | 21 | ||||
| 6 | 17 | 25 | ||||
| 7 | 3 | 27 | ||||
| 8 | 34 | 31 | ||||
| 232 | ||||||
| a. |
Convert the information on the number of hours parked to a probability distribution. (Round your answers to 3 decimal places.) |
| Hours | Probability |
| 1 | |
| 2 | |
| 3 | |
| 4 | |
| 5 | |
| 6 | |
| 7 | |
| 8 | |
| a-2. | Is this a discrete or a continuous probability distribution? |
|
| b-1. |
Find the mean and the standard deviation of the number of hours parked. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) |
| Mean | |
| Standard deviation | |
| b-2. |
How long is a typical customer parked? (Do not round intermediate calculations. Round your final answers to 3 decimal places.) |
| The typical customer is parked for | hours |
| c. |
Find the mean and the standard deviation of the amount charged. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) |
| Mean | |
| Standard deviation | |
In: Statistics and Probability
The following table, contains annual returns for the stocks of
ABC Corp. (ABC ) and XYZ Corp. (XYZ ). The returns are
calculated using end-of-year prices (adjusted for dividends and
stock splits). Use the information for ABC Corp. (ABC ) and XYZ
Corp. (XYZ ) to create an Excel spreadsheet that calculates the
average returns over the 10-year period for portfolios comprised
of ABC and XYZ using the following, respective, weightings:
(1.0, 0.0), (0.9, 0.1). The average annual returns over the
10-year period for ABC and XYZ are 15.33 % and 13.04 %
respectively. Also, calculate the portfolio standard deviation
over the 10-year period associated with each portfolio
composition. The standard deviation over the 10-year period for
ABC Corp. and XYZ Corp. and their correlation coefficient are 25.33
%, 23.42 %, and 0.84285 respectively. (Hint: Review Table
5.2.) Enter the average return and standard deviation for a
portfolio with 100% ABC Corp. and 0% XYZ Corp. in the table
below.
Year ABC Returns XYZ Returns
2005 -3.5% 17.3%
2006 1.9% -8.1%
2007 -31.6% -26.7%
2008 -10.3% -3.2%
2009 30.2% 9.9%
2010 26.5% 10.1%
2011 22.8% 4.8%
2012 52.4% 43.8%
2013 35.6% 42.3%
2014 29.3% 40.2%
Enter the average return and standard deviation for a portfolio
with 100% ABC Corp. and 0% XYZ Corp. in the table below. (Round
to two decimal places.)
Enter the average return and standard deviation for a portfolio
with 90% ABC Corp. and 10% XYZ Corp. in the table below. (Round
to two decimal places.)
In: Finance
An automobile repair shop is concerned about customer satisfaction in terms of the entire experience customers receive from the repair shop. In order to quantify the customer experience, three critical service characteristics have been identified:
Complaints of a failure to fix the vehicle.
Delay beyond the promised pickup time.
Complaints of damage to the inside/outside of the vehicle during repair.
A level of zero defects is the long-term goal. In order to address this goal, statistics have been collected over the past few months regarding these critical characteristics (see Table).
(A)Based on the Pareto principal, what would be the strategy for decreasing the total number of defects? (
B) With respect to the number of delays from promised completion time, does the process appear in-control? Assuming that special causes can be eliminated, what is the best estimate of the process capability?
(C) How is the process performing with respect to the number of items not fixed properly? What is the process capability?
| Day | (A) | (B) | (C) | (D) |
| 1 | 15 | 2 | 2 | 0 |
| 2 | 23 | 3 | 3 | 1 |
| 3 | 17 | 1 | 2 | 0 |
| 4 | 27 | 2 | 3 | 1 |
| 5 | 18 | 1 | 1 | 1 |
| 6 | 16 | 1 | 1 | 0 |
| 7 | 25 | 3 | 3 | 1 |
| 8 | 19 | 2 | 2 | 1 |
| 9 | 17 | 1 | 2 | 0 |
| 10 | 16 | 1 | 1 | 0 |
| 11 | 23 | 0 | 2 | 1 |
| 12 | 29 | 2 | 3 | 2 |
| 13 | 11 | 0 | 1 | 1 |
| 14 | 15 | 1 | 2 | 1 |
| 15 | 31 | 3 | 4 | 1 |
| 16 | 17 | 1 | 2 | 0 |
| 17 | 21 | 1 | 3 | 1 |
| 18 | 25 | 2 | 3 | 1 |
| 19 | 19 | 1 | 2 | 0 |
| 20 | 27 | 2 | 3 | 1 |
| 21 | 18 | 1 | 2 | 1 |
| 22 | 24 | 2 | 3 | 1 |
| 23 | 21 | 1 | 2 | 0 |
| 24 | 17 | 0 | 1 | 0 |
| 25 | 31 | 3 | 10 | 1 |
| 26 | 23 | 1 | 2 | 2 |
| 27 | 26 | 2 | 3 | 0 |
| 28 | 18 | 1 | 2 | 1 |
| 29 | 15 | 1 | 1 | 0 |
| 30 | 19 | 0 | 2 | 0 |
(A)Number of Vehicles in sample
(B) Number of items not fixed properly
(C) Number of delays from promised completion times
(D)Number of damaged items in repair
In: Statistics and Probability
Ewing Company sells household furniture. Customers who purchase
furniture on the installment basis make payments in equal monthly
installments over a two-year period, with no down payment required.
Ewing's gross profit on installment sales equals 40% of the selling
price of the furniture.
For financial accounting purposes, sales revenue is recognized at
the time the sale is made. For income tax purposes, however, the
installment method is used. There are no other book and income tax
accounting differences, and Ewing's income tax rate is 20%.
If Ewing's December 31, 2021, balance sheet includes a deferred tax
liability of $900,000 arising from the difference between book and
tax treatment of the installment sales, it should also include
installment accounts receivable of
In: Accounting