Consider the example below, how would you account for the revenue from a contract for HMM11 products? How would you account for the revenue from a contract for HMM12 products?

Early in the redesign of HMM12, Bills recognized that the decision for HBP to host the software would affect how revenues were recognized from sales of the new product. For HMM11, the client hosted the software on its servers and was responsible for all maintenance and operating costs. Although HBP offered to fix any software bugs, there was no contractual obligation to provide updates/point releases. As a result, the full value of any multi-year licensing contracts was recognized as revenue when the software was delivered.

If the client chose to have HMM11 software hosted on HBP’s server, the contract specified that the client would pay HBP an upfront licensing fee and a separate hosting fee (equivalent to about 10% of the licensing fee) at the time the contract was signed. In the majority of contracts, the client paid a nonrefundable licensing fee. Some clients negotiated a Termination for Convenience (TFC) clause. Since the underlying product was not updated and clients had the option of hosting the software on their systems or on HBP systems (incurring a separate hosting fee), HBP recorded the full value of the licensing fees as revenue at the beginning of the contract period. In contrast, hosting fees were recorded as deferred revenues and recognized as revenue ratably over the life of the contract (terms were 1, 2, or 3 years).

The new business model for HMM12 eliminated the option for clients to host HMM software and introduced an ongoing obligation for HBP. Clients would continue to pay an upfront licensing fee, but since only HBP could host the software there was no separate hosting fee. The license fee gave the client access to the software, the hosting, and any future improvement releases over the contract period. Accordingly, the contract was analogous to a subscription, rather than an outright sale.

For accounting purposes, HBP was required to record the upfront license fee as deferred revenue on its balance sheet. At the end of each accounting period, it would recognize a portion of the deferred revenue as earned revenue in the income statement. For example, if a client paid $360,000 for a 3-year (i.e., 36-month) license period, at the time of the contract HBP would record the $360,000 as deferred revenue (a liability) and cash (an asset) on the balance sheet. At the end of the first quarter (i.e., 3- months), HBP would recognize $30,000 (i.e., $360,000 divided by 36 months times 3 months) as earned revenue with a corresponding $30,000 subtracted from the deferred revenue liability.

Problem 3-8 (Algo) Balance sheet; errors; missing amounts [LO3-2, 3-3]

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.

Additional information ($ in 000s):

1. Certain records that included the account balances for the patent and shareholders’ equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.2. That is, total liabilities are 120% of total shareholders’ equity. Retained earnings at the beginning of the year was $4,600. Net income for 2021 was $1,600 and $800 in cash dividends were declared and paid to shareholders.
2. Management intends to sell the investments in the next six months.
3. Interest on both the notes and the bonds is payable annually.
4. The notes payable are due in annual installments of $1,150 each.
5. Deferred revenue will be recognized as revenue equally over the next two fiscal years.
6. The common stock represents 300,000 shares of no par stock authorized, 280,000 shares issued and outstanding.
   

Required:
Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Bloomington Publishers is considering publishing five different textbooks. The maximum number of copies of each textbook that can be sold, the variable cost of producing each textbook, the sales price of each textbook, and the fixed cost of a production run for each textbook are given in the file Prob3. For example, producing and selling 2000 copies of book 1 yields a revenue of $80(2000) = $160,000 but costs $80,000 + $44(2000) = $168,000. This company can produce at most 20,000 copies in total. Furthermore, it can publish no more than three different types of textbooks. Also, it knows that it cannot publish book 1 if it chooses to publish book 2. Finally, if this company publishes book 4 it must also publish book 5. Bloomington Publishers wants to find a production plan that maximizes total profit. Formulate and solve an integer programming model in Prob3 to help this publisher identify the best production plan.

Problem 3-8 (Algo) Balance sheet; errors; missing amounts [LO3-2, 3-3]

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.

Additional information ($ in 000s):

1. Certain records that included the account balances for the patent and shareholders’ equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.1. That is, total liabilities are 110% of total shareholders’ equity. Retained earnings at the beginning of the year was $7,400. Net income for 2021 was $2,400 and $800 in cash dividends were declared and paid to shareholders.
2. Management intends to sell the investments in the next six months.
3. Interest on both the notes and the bonds is payable annually.
4. The notes payable are due in annual installments of $1,850 each.
5. Deferred revenue will be recognized as revenue equally over the next two fiscal years.
6. The common stock represents 600,000 shares of no par stock authorized, 420,000 shares issued and outstanding.
   

Required:
Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

rev: 01_30_2020_QC_CS-195439, 02_13_2020_QC_CS-200385

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Problem 3-8 (Algo) Balance sheet; errors; missing amounts [LO3-2, 3-3]

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.

Additional information ($ in 000s):

1. Certain records that included the account balances for the patent and shareholders’ equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.1. That is, total liabilities are 110% of total shareholders’ equity. Retained earnings at the beginning of the year was $7,400. Net income for 2021 was $2,400 and $800 in cash dividends were declared and paid to shareholders.
2. Management intends to sell the investments in the next six months.
3. Interest on both the notes and the bonds is payable annually.
4. The notes payable are due in annual installments of $1,850 each.
5. Deferred revenue will be recognized as revenue equally over the next two fiscal years.
6. The common stock represents 600,000 shares of no par stock authorized, 420,000 shares issued and outstanding.
   

Required:
Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

rev: 01_30_2020_QC_CS-195439, 02_13_2020_QC_CS-200385

Problem 3-8 Balance sheet; errors; missing amounts [LO3-2, 3-3]

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.

Additional information ($ in 000s):

Certain records that included the account balances for the patent and shareholders’ equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.2. That is, total liabilities are 120% of total shareholders’ equity. Retained earnings at the beginning of the year was $8,000. Net income for 2018 was $2,550 and $600 in cash dividends were declared and paid to shareholders.

Management intends to sell the investments in the next six months.

Interest on both the note and the bonds is payable annually.

The note payable is due in annual installments of $2,000 each.

Deferred revenue will be recognized as revenue equally over the next two fiscal years.

The common stock represents 700,000 shares of no par stock authorized, 450,000 shares issued and outstanding.

Required:
Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
  

A goal of financial literacy for children is to learn how to manage money wisely. One question is: How much money do children have to manage? A recent study by Schnur Educational Research Associates randomly sampled 15 children between 8 and 10 years old and 18 children between 11 and 14 years old and recorded their monthly allowance. Is it reasonable to conclude that the mean allowance received by children between 11 and 14 years is more than the allowance received by children between 8 and 10 years? Use the 0.01 significance level. What is the p-value?

Click here for the Excel Data File

1. State the decision rule: H₀: μ_{8-10 Year olds} ≥ μ_{11-14 Year olds}H₁: μ_{8-10 Year olds <}μ_{11-14 Year olds}. (Negative value should be indicated by a minus sign. Round your answer to 3 decimal places.)

2. Compute the value of the test statistic. (Negative value should be indicated by a minus sign. Round your answer to 3 decimal places.)

One particular morning, the length of time spent in the examination rooms is recorded for each patient seen by each physician at an orthopedic clinic.

Fill in the missing data. (Round your p-value to 4 decimal places, mean values to 1 decimal place, and other answers to 2 decimal places.)

(a) Based on the given hypotheses, choose the correct option.

H₀: μ₁ = μ₂ = μ₃ = μ₄
H₁: Not all the means are equal

α = 0.05

• Reject the null hypothesis if F > 3.01

• Reject the null hypothesis if F < 3.01

(b) Calculate the F for one factor. (Round your answer to 2 decimal places.)

F for one factor is              

(c) On the basis of the above findings, we reject the null hypothesis. Is the statement true?

• Yes

• No

Data from the Office for National Statistics show that the mean age at which men in Great Britain get married was 32.5. A news reporter noted that this represents a continuation of the trend of waiting until a later age to wed. A new sample of 47 recently wed British men provided their age at the time of marriage. These data are contained in the Excel Online file below. Construct a spreadsheet to answer the following questions.

Open spreadsheet

Do these data indicate that the mean age of British men at the time of marriage exceeds the mean age in 2013? Test this hypothesis at . What is your conclusion? Use the obtained rounded values in your calculations.

Because -value _________≤> , we _________rejectfail to reject . There is _________insufficientsufficient evidence to conclude that the mean age at which British men get married exceeds what it was in 2013.

General Electric recently conducted a study to evaluate filaments in their industrial high intensity bulbs. Investigators recorded the number of weeks each high-intensity bulb would last before failure for three test filaments (Groups 1, 2, and 3) and the standard filament (Group 4). The results are as follows. Using ? = 0.01,

Group       1          2       3        4

                 15       14     25     28

                 18       18     19     31

                 21       20     22     27

                 16       16     20     32

                 17       15     18     23

                 20       16     24     25

                18         22     27     30

                              14    18     27     

                                      24     25

                                               26

1. Write an appropriate ANOVA hypothesis to test the difference in means of the four groups (null and alternative).
2. Read the data into R or R-studio, run an ANOVA model in R and paste the code used as well as the output here. What is the decision based on the ANOVA test? You need to explain what part of the output led you to the conclusion you made.
3. Continue using R: Use the Tukey method to test all pairwise contrasts. Show the R code, output, and explain the results of all the comparisons in complete sentences while referencing the parts/numbers on the output that support your conclusions.

WRITE ALL THE CODE USED THE R or R-STUDIO!