In: Economics
In: Math
Assume that your firm was auditing General Electric in 2000 and was recommending an adjustment to its financial statements that reduced net income. Based on the fees paid to your firm in 2000, what incentive(s) might your firm consider in insisting upon this adjustment? How would your firm's incentive(s) differ after 2004?
In: Accounting
A manager for an insurance company believes that customers have the following preferences for life insurance products: 50% prefer Whole Life, 30% prefer Universal Life, and 20% prefer Life Annuities. The results of a survey of 351 customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data?
| Product | Number |
|---|---|
| Whole | 39 |
| Universal | 86 |
| Annuities | 226 |
Copy Data
Step 8 of 10 :
Find the critical value of the test at the 0.025 level of significance. Round your answer to three decimal places.
In: Statistics and Probability
Social Media and Business
Businesses use social media to engage their customers and market their products but they don’t always get it right. An example of a social media disaster was when, in 2012, McDonald’s launched a Twitter campaign where they paid a large sum of money to promote the hashtag #McDStories They hoped customers would share positive stories of their visits to their restaurants. However, people started sharing negative reviews, the company realised that their reputation was at risk and they quickly pulled the campaign.
What lessons can be learned from this failed social media campaign and how can companies design campaigns to be effective and engaging for customers?
In: Economics
Moon Star Company obtained two notes receivable during the year of 2019. The details of the notes are as follows:
October 3, 2019 Sold goods for $24,000 on account to a customer (Sun Company) and received 8% note. The note was due on October 18, 2019.
December 5, 2019 Received 13% note for $15,000 to replace account receivable from a customer (Strong Company). The note was due on January 5, 2020.
In: Accounting
The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.40% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years.
| Year 1 | Year 2 | Year 3 | ||||||||||||
| Sales Revenue | $ | 373,000 | $ | 379,000 | $ | 378,000 | ||||||||
| Bad Debt Expense | Unknown | Unknown | Unknown | |||||||||||
| Other Expenses | 337,000 | 337,000 | 337,750 | |||||||||||
| Net Income | Unknown | Unknown | Unknown | |||||||||||
Required:
In: Accounting
Bill Evans began Evans Distributors, a sporting goods distribution company, in January 20X1 and engaged in the transactions below. Assume Evans Distributors and its customers take advantage of all cash discounts.
| DATE | TRANSACTIONS | ||
| 20X1 | |||
| Jan. | 1 | Bill Evans started Evans Distributors with an investment of $56,050. He also invested personal business equipment worth $7,920. | |
| 2 | Purchased merchandise for cash, $11,850, Check 100. | ||
| 3 | Sold merchandise on account to Rivera Corporation, $1,010, terms 2/10, n/30, Invoice 1001. | ||
| 4 | Purchased merchandise on account from Tsang Company, $2,420, terms 1/10, n/30, Invoice 1125. | ||
| 5 | Received and paid freight charges related to January 4 purchase of merchandise from Tsang Company, $220, Check 101. | ||
| 10 | Rivera Corporation returned merchandise purchased on January 3; issued credit memo #101 for $220. | ||
| 11 | Received payment in full from Rivera Corporation, after the return of January 10 and after the discount. | ||
| 13 | Paid amount due to Tsang Company for purchase of January 4, Check 102. | ||
| 15 | Recorded cash sales for the two-week period ended January 15 of $7,620. | ||
| 15 | Recorded sales on credit cards for the two-week period ended January 15, $1,315; the bank charges a 3 percent fee on all credit card sales. | ||
| 15 | Paid wages, $2,025, Check 103. | ||
| 16 | Purchased equipment (not for resale), $1,915, Check 104. | ||
| 17 | Paid freight for delivery of equipment purchased on January 16, $230, Check 105. | ||
| 18 | Purchased merchandise on account from Terri Manufacturing with a list price of $6,300, subject to a trade discount of 40 percent, terms 1/10, n/30, Invoice 2078. | ||
| 20 | Sold merchandise on account to Moloney Corp., $3,380, terms 1/10, n/30, Invoice 1002. | ||
| 21 | Purchased merchandise on account from Johnson Company, $2,480, terms 1/10, n/30, Invoice 3204; freight prepaid by Johnson Company and added to invoice, $150. (Total invoice amount, $2,630.00.) | ||
| 27 | Paid amount owed to Terri Manufacturing for purchase of January 18, Check 106. | ||
| 28 | Purchased merchandise from Fronke Sports Fabricators with a list price of $3,280, subject to trade discounts of 25 percent and 10 percent, terms n/30, Invoice 1888. | ||
| 29 | Received amount due from Moloney Corp. for the sale of January 20. | ||
| 30 | Paid amount due to Johnson Company for purchase of January 21, Check 107. | ||
| 31 | Recorded cash sales for the period from January 16–31, $8,225. | ||
| 31 | Recorded sales on the credit cards for the period from January 16–31, $2,520; the bank charges a 3 percent fee on all credit card sales. | ||
Required:
Record the transactions in a general journal. (Round your
answers to 2 decimal places.)
In: Accounting
A statistical program is recommended.
A study investigated the relationship between audit delay (Delay), the length of time from a company's fiscal year-end to the date of the auditor's report, and variables that describe the client and the auditor. Some of the independent variables that were included in this study follow.
| Industry | A dummy variable coded 1 if the firm was an industrial company or 0 if the firm was a bank, savings and loan, or insurance company. |
|---|---|
| Public | A dummy variable coded 1 if the company was traded on an organized exchange or over the counter; otherwise coded 0. |
| Quality | A measure of overall quality of internal controls, as judged by the auditor, on a five-point scale ranging from "virtually none" (1) to "excellent" (5). |
| Finished | A measure ranging from 1 to 4, as judged by the auditor, where 1 indicates "all work performed subsequent to year-end" and 4 indicates "most work performed prior to year-end." |
A sample of 40 companies provided the following data.
| Delay | Industry | Public | Quality | Finished |
|---|---|---|---|---|
| 62 | 0 | 0 | 3 | 1 |
| 45 | 0 | 1 | 3 | 3 |
| 54 | 0 | 0 | 2 | 2 |
| 71 | 0 | 1 | 1 | 2 |
| 91 | 0 | 0 | 1 | 1 |
| 62 | 0 | 0 | 4 | 4 |
| 61 | 0 | 0 | 3 | 2 |
| 69 | 0 | 1 | 5 | 2 |
| 80 | 0 | 0 | 1 | 1 |
| 52 | 0 | 0 | 5 | 3 |
| 47 | 0 | 0 | 3 | 2 |
| 65 | 0 | 1 | 2 | 3 |
| 60 | 0 | 0 | 1 | 3 |
| 81 | 1 | 0 | 1 | 2 |
| 73 | 1 | 0 | 2 | 2 |
| 89 | 1 | 0 | 2 | 1 |
| 71 | 1 | 0 | 5 | 4 |
| 76 | 1 | 0 | 2 | 2 |
| 68 | 1 | 0 | 1 | 2 |
| 68 | 1 | 0 | 5 | 2 |
| 86 | 1 | 0 | 2 | 2 |
| 76 | 1 | 1 | 3 | 1 |
| 67 | 1 | 0 | 2 | 3 |
| 57 | 1 | 0 | 4 | 2 |
| 55 | 1 | 1 | 3 | 2 |
| 54 | 1 | 0 | 5 | 2 |
| 69 | 1 | 0 | 3 | 3 |
| 82 | 1 | 0 | 5 | 1 |
| 94 | 1 | 0 | 1 | 1 |
| 74 | 1 | 1 | 5 | 2 |
| 75 | 1 | 1 | 4 | 3 |
| 69 | 1 | 0 | 2 | 2 |
| 71 | 1 | 0 | 4 | 4 |
| 79 | 1 | 0 | 5 | 2 |
| 80 | 1 | 0 | 1 | 4 |
| 91 | 1 | 0 | 4 | 1 |
| 92 | 1 | 0 | 1 | 4 |
| 46 | 1 | 1 | 4 | 3 |
| 72 | 1 | 0 | 5 | 2 |
| 85 | 1 | 0 | 5 | 1 |
(a) Develop the estimated regression equation using all of the independent variables. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.)
ŷ =
(b) Did the estimated regression equation developed in part (a) provide a good fit? Explain. (Use α = 0.05. For purposes of this exercise, consider an adjusted coefficient of determination value high if it is at least 50%.)
No, testing for significance shows that all independent variables except Public are not significant.
Yes, testing for significance shows that the overall model is significant and all the individual independent variables are significant.
Yes, the low p-value and high value of the adjusted coefficient of determination indicate a good fit.
No, the low value of the adjusted coefficient of determination does not indicate a good fit.
(c) Develop a scatter diagram showing Delay as a function of Finished.
What does this scatter diagram indicate about the relationship between Delay and Finished?
The scatter diagram suggests a linear relationship between these two variables.
The scatter diagram suggests no relationship between these two variables.
The scatter diagram suggests a curvilinear relationship between these two variables.
(d) On the basis of your observations about the relationship between Delay and Finished, use best-subsets regression to develop an alternative estimated regression equation to the one developed in (a) to explain as much of the variability in Delay as possible. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.)
ŷ =
In: Statistics and Probability
The First National Bank of Wilson has 740 checking account customers. A recent sample of 60 of these customers showed 36 have a Visa card with the bank.
|
Construct the 98% confidence interval for the proportion of checking account customers who have a Visa card with the bank. (Use z Distribution Table.) (Round your answers to 3 decimal places. |
|
Confidence interval for the proportion is between and . |
In: Statistics and Probability