Assume that the index number representing the price level changes from 110 in 2018 to 120 in 2019. Then it changes from 120 in 2019 to 130 in 2020. Is the inflation rate the same each year? Calculate and explain your answer
1. Change from 2018 to 2019=
2. Change from 2019 to 2020=
In: Economics
College Graduation Rates. Data from the College Results Online website compared the 2011 graduation rate and median SAT score for 92 similar-sized public universities and colleges in the United States. The scatterplot below shows the relationship between these two variables along with the least squares fit. Round all calculated results to 4 decimal places.
1. The relationship between median SAT score and graduation rate is ? positive negative , ? weak strong , and ? linear non-linear .
2. The explanatory variable is ? graduation rate median SAT college year and the response variable is ? graduation rate median SAT college year .
The summary statistics for graduation rate and median SAT score are listed below. The correlation between graduation rate and median SAT score is 0.649.
Median SAT score: mean = 1033.3, standard deviation = 80.1
Graduation rate: mean = 51.8, standard deviation = 13.7
3. The equation of the regression line is y = + x
4. Complete the following sentence to interpret the slope of the regression line:
An increase of in Median SAT score corresponds to a/an ? decrease increase of in Graduation Rate.
5. The recorded median SAT score for Northern Michigan University is 1028. Use the regression equation to estimate the graduation rate for Northern Michigan University.
6. The recorded graduation rate for Northern Michigan University is 47.6. Complete the following sentence.
The residual for Northern Michigan University is .
This means the graduation rate at Northern Michigan University
is
A. higher than
B. lower than
C. the same as
the rate predicted by the regression model.
7. Stanford University (an elite private university in
California not included in this data set) has a median SAT score of
1455. Would it be appropriate to use this linear model to predict
the graduation rate for Stanford?
A. No, because 1455 is beyond the range of the
data used to build the regression model.
B. No, because 98.610% is too large to be a
reasonable graduation rate, even for an elite university.
C. Yes, because 1455 is a reasonable median SAT
score for an elite university.
In: Statistics and Probability
College Graduation Rates. Data from the College Results Online website compared the 2011 graduation rate and median SAT score for 92 similar-sized public universities and colleges in the United States. The scatterplot below shows the relationship between these two variables along with the least squares fit. Round all calculated results to 4 decimal places.
1. The relationship between median SAT score and graduation rate is ? positive negative , ? weak strong , and ? linear non-linear .
2. The explanatory variable is ? graduation rate median SAT college year and the response variable is ? graduation rate median SAT college year .
The summary statistics for graduation rate and median SAT score are listed below. The correlation between graduation rate and median SAT score is 0.649.
Median SAT score: mean = 1033.3, standard deviation = 80.1
Graduation rate: mean = 51.8, standard deviation = 13.7
3. The equation of the regression line is y = + x
4. Complete the following sentence to interpret the slope of the regression line:
An increase of in Median SAT score corresponds to a/an ? decrease increase of in Graduation Rate.
5. The recorded median SAT score for Northern Michigan University is 1028. Use the regression equation to estimate the graduation rate for Northern Michigan University.
6. The recorded graduation rate for Northern Michigan University is 47.6. Complete the following sentence.
The residual for Northern Michigan University is .
This means the graduation rate at Northern Michigan University
is
A. lower than
B. higher than
C. the same as
the rate predicted by the regression model.
7. Stanford University (an elite private university in
California not included in this data set) has a median SAT score of
1455. Would it be appropriate to use this linear model to predict
the graduation rate for Stanford?
A. Yes, because 1455 is a reasonable median SAT
score for an elite university.
B. No, because 1455 is beyond the range of the
data used to build the regression model.
C. No, because 98.610% is too large to be a
reasonable graduation rate, even for an elite university.
In: Statistics and Probability
(1 point) College Graduation Rates. Data from the College Results Online website compared the 2011 graduation rate and median SAT score for 92 similar-sized public universities and colleges in the United States. The scatterplot below shows the relationship between these two variables along with the least squares fit. Round all calculated results to 4 decimal places.
1. The relationship between median SAT score and graduation rate is ? positive negative , ? weak strong , and ? linear non-linear .
2. The explanatory variable is ? graduation rate median SAT college year and the response variable is ? graduation rate median SAT college year .
The summary statistics for graduation rate and median SAT score are listed below. The correlation between graduation rate and median SAT score is 0.641.
Median SAT score: mean = 1029.1, standard deviation = 78.3
Graduation rate: mean = 49.2, standard deviation = 14.7
3. The equation of the regression line is y = + x
4. Complete the following sentence to interpret the slope of the regression line:
An increase of in Median SAT score corresponds to a/an ? decrease increase of in Graduation Rate.
5. The recorded median SAT score for Northern Michigan University is 1028. Use the regression equation to estimate the graduation rate for Northern Michigan University.
6. The recorded graduation rate for Northern Michigan University is 47.9. Complete the following sentence.
The residual for Northern Michigan University is .
This means the graduation rate at Northern Michigan University
is
A. the same as
B. higher than
C. lower than
the rate predicted by the regression model.
7. Stanford University (an elite private university in
California not included in this data set) has a median SAT score of
1455. Would it be appropriate to use this linear model to predict
the graduation rate for Stanford?
A. No, because 100.453% is too large to be a
reasonable graduation rate, even for an elite university.
B. No, because 1455 is beyond the range of the
data used to build the regression model.
C. Yes, because 1455 is a reasonable median SAT
score for an elite university.
In: Statistics and Probability
College Graduation Rates. Data from the College Results Online website compared the 2011 graduation rate and median SAT score for 92 similar-sized public universities and colleges in the United States. The scatterplot below shows the relationship between these two variables along with the least squares fit. Round all calculated results to 4 decimal places.
1. The relationship between median SAT score and graduation rate is ? positive negative , ? weak strong , and ? linear non-linear .
2. The explanatory variable is ? graduation rate median SAT college year and the response variable is ? graduation rate median SAT college year .
The summary statistics for graduation rate and median SAT score are listed below. The correlation between graduation rate and median SAT score is 0.641.
Median SAT score: mean = 1029.1, standard deviation = 78.3
Graduation rate: mean = 49.2, standard deviation = 14.7
3. The equation of the regression line is y = + x
4. Complete the following sentence to interpret the slope of the regression line:
An increase of in Median SAT score corresponds to a/an ? decrease increase of in Graduation Rate.
5. The recorded median SAT score for Northern Michigan University is 1028. Use the regression equation to estimate the graduation rate for Northern Michigan University.
6. The recorded graduation rate for Northern Michigan University is 47.9. Complete the following sentence.
The residual for Northern Michigan University is .
This means the graduation rate at Northern Michigan University
is
A. the same as
B. higher than
C. lower than
the rate predicted by the regression model.
7. Stanford University (an elite private university in
California not included in this data set) has a median SAT score of
1455. Would it be appropriate to use this linear model to predict
the graduation rate for Stanford?
A. No, because 100.453% is too large to be a
reasonable graduation rate, even for an elite university.
B. No, because 1455 is beyond the range of the
data used to build the regression model.
C. Yes, because 1455 is a reasonable median SAT
score for an elite university.
In: Statistics and Probability
(1 point) College Graduation Rates. Data from the College Results Online website compared the 2011 graduation rate and median SAT score for 92 similar-sized public universities and colleges in the United States. The scatterplot below shows the relationship between these two variables along with the least squares fit. Round all calculated results to 4 decimal places.
1. The relationship between median SAT score and graduation rate is ? positive negative , ? weak strong , and ? linear non-linear .
2. The explanatory variable is ? graduation rate median SAT college year and the response variable is ? graduation rate median SAT college year .
The summary statistics for graduation rate and median SAT score are listed below. The correlation between graduation rate and median SAT score is 0.676.
Median SAT score: mean = 1038.5, standard deviation = 78.6
Graduation rate: mean = 48.2, standard deviation = 13.4
3. The equation of the regression line is y = ...(?) + (?) x
4. Complete the following sentence to interpret the slope of the regression line:
An increase of in Median SAT score corresponds to a/an ? decrease increase of (?) in Graduation Rate.
5. The recorded median SAT score for Northern Michigan University is 1032. Use the regression equation to estimate the graduation rate for Northern Michigan University.
6. The recorded graduation rate for Northern Michigan University is 48.1. Complete the following sentence.
The residual for Northern Michigan University is ....(?) . This
means the graduation rate at Northern Michigan University is
A. higher than
B. the same as
C. lower than the rate predicted by the regression
model.
7. Stanford University (an elite private university in
California not included in this data set) has a median SAT score of
1455. Would it be appropriate to use this linear model to predict
the graduation rate for Stanford?
A. No, because 96.200% is too large to be a
reasonable graduation rate, even for an elite university.
B. Yes, because 1455 is a reasonable median SAT
score for an elite university.
C. No, because 1455 is beyond the range of the
data used to build the regression model.
In: Statistics and Probability
College Graduation Rates. Data from the College
Results Online website compared the 2011 graduation rate and median
SAT score for 92 similar-sized public universities and colleges in
the United States. The scatterplot below shows the relationship
between these two variables along with the least squares fit. Round
all calculated results to 4 decimal places.
1. The relationship between median SAT score and graduation rate is ? positive negative , ? weak strong , and ? linear non-linear .
2. The explanatory variable is ? graduation rate median SAT college year and the response variable is ? graduation rate median SAT college year .
The summary statistics for graduation rate and median SAT score are listed below. The correlation between graduation rate and median SAT score is 0.655.
Median SAT score: mean = 1035.9, standard deviation = 79.3
Graduation rate: mean = 51.9, standard deviation = 14.5
3. The equation of the regression line is y = + x
4. Complete the following sentence to interpret the slope of the regression line:
An increase of in Median SAT score corresponds to a/an ? decrease increase of in Graduation Rate.
5. The recorded median SAT score for Northern Michigan University is 1032. Use the regression equation to estimate the graduation rate for Northern Michigan University.
6. The recorded graduation rate for Northern Michigan University is 47. Complete the following sentence.
The residual for Northern Michigan University is .
This means the graduation rate at Northern Michigan University
is
A. higher than
B. the same as
C. lower than
the rate predicted by the regression model.
7. Stanford University (an elite private university in
California not included in this data set) has a median SAT score of
1455. Would it be appropriate to use this linear model to predict
the graduation rate for Stanford?
A. No, because 102.094% is too large to be a
reasonable graduation rate, even for an elite university.
B. Yes, because 1455 is a reasonable median SAT
score for an elite university.
C. No, because 1455 is beyond the range of the
data used to build the regression model.
In: Statistics and Probability
College Graduation Rates. Data from the College Results Online website compared the 2011 graduation rate and median SAT score for 92 similar-sized public universities and colleges in the United States. The scatterplot below shows the relationship between these two variables along with the least squares fit. Round all calculated results to 4 decimal places.
1. The relationship between median SAT score and graduation rate is ? positive negative , ? weak strong , and ? linear non-linear .
2. The explanatory variable is ? graduation rate median SAT college year and the response variable is ? graduation rate median SAT college year .
The summary statistics for graduation rate and median SAT score are listed below. The correlation between graduation rate and median SAT score is 0.663.
Median SAT score: mean = 1030.3, standard deviation = 80.7
Graduation rate: mean = 49.6, standard deviation = 14.3
3. The equation of the regression line is y = + x
4. Complete the following sentence to interpret the slope of the regression line:
An increase of in Median SAT score corresponds to a/an ? decrease increase of in Graduation Rate.
5. The recorded median SAT score for Northern Michigan University is 1026. Use the regression equation to estimate the graduation rate for Northern Michigan University.
6. The recorded graduation rate for Northern Michigan University is 46.3. Complete the following sentence.
The residual for Northern Michigan University is .
This means the graduation rate at Northern Michigan University
is
A. lower than
B. higher than
C. the same as
the rate predicted by the regression model.
7. Stanford University (an elite private university in
California not included in this data set) has a median SAT score of
1455. Would it be appropriate to use this linear model to predict
the graduation rate for Stanford?
A. Yes, because 1455 is a reasonable median SAT
score for an elite university.
B. No, because 1455 is beyond the range of the
data used to build the regression model.
C. No, because 99.495% is too large to be a
reasonable graduation rate, even for an elite university.
In: Statistics and Probability
On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $767,200 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $328,800 both before and after Truman’s acquisition.
In reviewing its acquisition, Truman assigned a $138,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.
The following financial information is available for these two companies for 2021. In addition, the subsidiary’s income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.
| Truman | Atlanta | ||||||
| Revenues | $ | (761,695 | ) | $ | (497,000 | ) | |
| Operating expenses | 489,000 | 357,000 | |||||
| Income of subsidiary | (39,305 | ) | 0 | ||||
| Net income | $ | (312,000 | ) | $ | (140,000 | ) | |
| Retained earnings, 1/1/21 | $ | (883,000 | ) | $ | (516,000 | ) | |
| Net income (above) | (312,000 | ) | (140,000 | ) | |||
| Dividends declared | 140,000 | 70,000 | |||||
| Retained earnings, 12/31/21 | $ | (1,055,000 | ) | $ | (586,000 | ) | |
| Current assets | $ | 484,995 | $ | 433,000 | |||
| Investment in Atlanta | 782,005 | 0 | |||||
| Land | 431,000 | 233,000 | |||||
| Buildings | 749,000 | 659,000 | |||||
| Total assets | $ | 2,447,000 | $ | 1,325,000 | |||
| Liabilities | $ | (892,000 | ) | $ | (419,000 | ) | |
| Common stock | (95,000 | ) | (300,000 | ) | |||
| Additional paid-in capital | (405,000 | ) | (20,000 | ) | |||
| Retained earnings, 12/31/21 | (1,055,000 | ) | (586,000 | ) | |||
| Total liabilities and stockholders' equity | $ | (2,447,000 | ) | $ | (1,325,000 | ) | |
a) What is the excess fair-value assigned to patent and goodwill?
b) How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?
c) How did Truman derive the Investment in Atlanta account balance at the end of 2021?
d) Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables.
In: Accounting
3.On January 1, 2016, Fuller Company acquired a 80% interest in Wilson Company for a purchase price that was $240,000 over the book value of the Wilson’s Stockholders’ Equity on the acquisition date. Fuller uses the equity method to account for its investment in Wilson. Fuller assigned the acquisition-date AAP as follows:
|
AAP Items |
Initial Fair Value |
Useful Life (years) |
|
PPE, net |
$150,000 |
20 |
|
Patent |
90,000 |
15 |
|
$240,000 |
Wilson sells inventory to Fuller (upstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data for the years ending 2018 and 2019:
|
2018 |
2019 |
|
|
Transfer price for inventory sale |
$70,000 |
$94,500 |
|
Cost of goods sold |
(45,000) |
(64,500) |
|
Gross profit |
$25,000 |
$30,000 |
|
% inventory remaining |
20% |
30% |
|
Gross profit deferred |
$ 5,000 |
$ 9,000 |
|
EOY Receivable/Payable |
$29,500 |
$32,000 |
The inventory not remaining at the end of the year has been sold outside of the controlled group.
The parent and the subsidiary report the following financial statements at December 31, 2019:
|
Income Statement |
||
|
Fuller |
Wilson |
|
|
Sales |
$4,160,000 |
$401,600 |
|
Cost of goods sold |
(3,098,100) |
(232,700) |
|
Gross Profit |
1,061,900 |
168,900 |
|
Income (loss) from subsidiary |
49,200 |
|
|
Operating expenses |
(711,200) |
(89,900) |
|
Net income |
$ 399,900 |
$ 79,000 |
|
Statement of Retained Earnings |
||
|
Fuller |
Wilson |
|
|
BOY Retained Earnings |
$2,696,120 |
$404,400 |
|
Net income |
399,900 |
79,000 |
|
Dividends |
(74,500) |
(8,900) |
|
EOY Retained Earnings |
$3,021,520 |
$474,500 |
|
Balance Sheet |
||
|
Fuller |
Wilson |
|
|
Assets: |
||
|
Cash |
$ 309,420 |
$ 84,700 |
|
Accounts receivable |
433,600 |
113,200 |
|
Inventory |
641,900 |
142,100 |
|
Equity Investment |
774,400 |
|
|
PPE, net |
4,063,200 |
800,500 |
|
$6,222,520 |
$1,140,500 |
|
|
Liabilities and Stockholders’ Equity: |
||
|
Current Liabilities |
$ 505,900 |
$ 99,500 |
|
Long-term Liabilities |
703,500 |
250,000 |
|
Common Stock |
402,000 |
75,300 |
|
APIC |
1,589,600 |
241,200 |
|
Retained Earnings |
3,021,520 |
474,500 |
|
$6,222,520 |
$1,140,500 |
|
a. Compute the EOY noncontrolling interest equity balance
b. Prepare the consolidation journal entries.
In: Accounting