Questions
Develop estimated regression equations, first using annual income as the independent variable and then using household...

Develop estimated regression equations, first using annual income as the independent variable and then using household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss your findings -

Income
($1000s)		 Household
Size		 Amount
Charged ($)
54 3 4,016
30 2 3,159
32 4 5,100
50 5 4,742
31 2 1,864
55 2 4,070
37 1 2,731
40 2 3,348
66 4 4,764
51 3 4,110
25 3 4,208
48 4 4,219
27 1 2,477
33 2 2,514
65 3 4,214
63 4 4,965
42 6 4,412
21 2 2,448
44 1 2,995
37 5 4,171
62 6 5,678
21 3 3,623
55 7 5,301
42 2 3,020
41 7 4,828
54 6 5,573
30 1 2,583
48 2 3,866
34 5 3,586
67 4 5,037
50 2 3,605
67 5 5,345
55 6 5,370
52 2 3,890
62 3 4,705
64 2 4,157
22 3 3,579
29 4 3,890
39 2 2,972
35 1 3,121
39 4 4,183
54 3 3,730
23 6 4,127
27 2 2,921
26 7 4,603
61 2 4,273
30 2 3,067
22 4 3,074
46 5 4,820
66 4 5,149

In: Statistics and Probability

Develop an estimated regression equation with annual income and household size as the independent variables. Discuss...

Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings -

Income
($1000s)		 Household
Size		 Amount
Charged ($)
54 3 4,016
30 2 3,159
32 4 5,100
50 5 4,742
31 2 1,864
55 2 4,070
37 1 2,731
40 2 3,348
66 4 4,764
51 3 4,110
25 3 4,208
48 4 4,219
27 1 2,477
33 2 2,514
65 3 4,214
63 4 4,965
42 6 4,412
21 2 2,448
44 1 2,995
37 5 4,171
62 6 5,678
21 3 3,623
55 7 5,301
42 2 3,020
41 7 4,828
54 6 5,573
30 1 2,583
48 2 3,866
34 5 3,586
67 4 5,037
50 2 3,605
67 5 5,345
55 6 5,370
52 2 3,890
62 3 4,705
64 2 4,157
22 3 3,579
29 4 3,890
39 2 2,972
35 1 3,121
39 4 4,183
54 3 3,730
23 6 4,127
27 2 2,921
26 7 4,603
61 2 4,273
30 2 3,067
22 4 3,074
46 5 4,820
66 4 5,149

In: Statistics and Probability

What is the predicted annual credit card charge for a three-person household with an annual income...

What is the predicted annual credit card charge for a three-person household with an annual income of $40,000 (show your work) -

Income
($1000s)		 Household
Size		 Amount
Charged ($)
54 3 4,016
30 2 3,159
32 4 5,100
50 5 4,742
31 2 1,864
55 2 4,070
37 1 2,731
40 2 3,348
66 4 4,764
51 3 4,110
25 3 4,208
48 4 4,219
27 1 2,477
33 2 2,514
65 3 4,214
63 4 4,965
42 6 4,412
21 2 2,448
44 1 2,995
37 5 4,171
62 6 5,678
21 3 3,623
55 7 5,301
42 2 3,020
41 7 4,828
54 6 5,573
30 1 2,583
48 2 3,866
34 5 3,586
67 4 5,037
50 2 3,605
67 5 5,345
55 6 5,370
52 2 3,890
62 3 4,705
64 2 4,157
22 3 3,579
29 4 3,890
39 2 2,972
35 1 3,121
39 4 4,183
54 3 3,730
23 6 4,127
27 2 2,921
26 7 4,603
61 2 4,273
30 2 3,067
22 4 3,074
46 5 4,820
66 4 5,149

In: Statistics and Probability

Journal Entries and Trial Balance On October 1, 2018, Jay Pryor established an interior decorating business,...

Journal Entries and Trial Balance

On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business:

Oct. 1 Jay transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $23,700.
4 Paid rent for period of October 4 to end of month, $2,300.
10 Purchased a used truck for $20,000, paying $2,000 cash and giving a note payable for the remainder.
13 Purchased equipment on account, $9,240.
14 Purchased supplies for cash, $1,590.
15 Paid annual premiums on property and casualty insurance, $3,560.
15 Received cash for job completed, $9,950.

Enter the following transactions on Page 2 of the two-column journal:

21 Paid creditor a portion of the amount owed for equipment purchased on October 13, $3,290.
24 Recorded jobs completed on account and sent invoices to customers, $11,330.
26 Received an invoice for truck expenses, to be paid in November, $1,040.
27 Paid utilities expense, $1,190.
27 Paid miscellaneous expenses, $430.
29 Received cash from customers on account, $4,740.
30 Paid wages of employees, $3,150.
31

Paid dividends, $2,630.

2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in the general journal as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. If an amount box does not require an entry, leave it blank.

General Ledger
Account Cash ACCOUNT NO. 11
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 1 1
Oct. 4 1
Oct. 10 1
Oct. 14 1
Oct. 15 1
Oct. 15 1
Oct. 21 2
Oct. 27 2
Oct. 27 2
Oct. 29 2
Oct. 30 2
Oct. 31 2

Account Accounts Receivable ACCOUNT NO. 12
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 24 2
Oct. 29 2

Account Supplies ACCOUNT NO. 13
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 14 1

Account Prepaid Insurance ACCOUNT NO. 14
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 15 1

Account Equipment ACCOUNT NO. 16
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 13 1

Account Truck ACCOUNT NO. 18
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 10 1

Account Notes Payable ACCOUNT NO. 21
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 10 1

Account Accounts Payable ACCOUNT NO. 22
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 13 1
Oct. 21 2
Oct. 26 2

Account Common Stock ACCOUNT NO. 31
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 1 1

Account Dividends ACCOUNT NO. 33
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 31 2

Account Fees Earned ACCOUNT NO. 41
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 15 1
Oct. 24 2

Account Wages Expense ACCOUNT NO. 51
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 30 2

Account Rent Expense ACCOUNT NO. 53
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 4 1

Account Utilities Expense ACCOUNT NO. 54
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 27 2

Account Truck Expense ACCOUNT NO. 55
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 26 2

Account Miscellaneous Expense ACCOUNT NO. 59
Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Oct. 27 2

In: Accounting

after a car wreck, most drivers would probably believe that an auto body shop would be...

after a car wreck, most drivers would probably believe that an auto body shop would be run by a man. Cindy Kleis wants to defy this stereotype by running her own dent and body repair operation. Her company is set to open in 3 months. It will offer serv'ices ranging from touch-up painting to minor and major repairs from crashes.

Cindy learned the trade from her father, who worked as an employee for a repair company for more than 30 years. He recently retired, and his former employer closed his shop. This left an opening for a new firm. After purchasing a highly "Sible location on a major street in the city, Cindy contacted a local advertising and marketing agency. She set aside $15,000 for the marketing of her launch.

The agency specializes in small business advertising and promotion. The question becomes how to reach the highest number of potential customers and the message that should be sent when making contact with them. Cindy believed that her primary advantage would be a set of skilled and experienced repair experts. with a combined 40 years of previous work. All three individuals were friends of her father and had been taught by him.

One question which would need to be resolved centered on whether the advertising should emphasize or de-emphasize the fact that the shop was owned and run by a woman. Cindy believed it was a true advantage. She noted that many women take charge when a family car is damaged, and that they might enjoy dealing With a female manager.

Media selection constitutes another major decision. Cindy knows she needs to entice people to make the first visit. which could be months or even years down the road She needs to place her company's name in their minds so that when the time comes they will visit her location.

The city in which the company is located has about 150,000 residents. When combined with the county, about 300,000 potential customers are present. The new company will have 3 major competitors in the city.

question: Create an effective media mix and describe the campaign you would create for the grand opening and subsequent months for Cindys Auto Body Repair Shop.

In: Operations Management

Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in...

Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. The resulting balance sheet at the beginning of 2012 is provided below:
Francine’s Fast Deliveries, Inc.
Balance Sheet
at January 1, 2012
  Assets:    Liabilities:
   Cash $ 2,225    Accounts Payable $ 2,010
   Accounts Receivable 1,400    Stockholders’ Equity:
   Supplies 1,200    Common Stock $ 2,000
   Retained Earnings 815
  Total Assets $ 4,825    Total Liabilities & Stk. Equity $ 4,825
January Transactions for Francine’s Fast Deliveries, Inc. (FFD)
  Date
1     Owners invest $36,000 of additional cash in the business.
2a     Supplies are purchased for $1,500 on account.
2b     Insurance is paid for 12 months beginning January 1: $9,300 (Record as an asset)
2c     Rent is paid for 3 months beginning in January: $5,400 (Record as an asset)
2d     Two employees are hired. Each employee will be paid $2,130 per month
3     FFD borrows $40,000 from 1st State Bank at 6% annual interest.
6    

A delivery van is purchased for cash. Including tax the total cost was $72,000. It will be used for 4 years and will be depreciated monthly using straight-line with no salvage value. A full month of depreciation will be charged in January.
7     $980 of the receivables from December’s sales are collected.
8     $1,608 of the accounts payable from December are paid.
9     Performed services for customers on account. Mailed invoices totaling $12,000.
10     Services are performed for cash customers: $8,400.
16     Wages for the first half of the month are paid on January 16: $2,130.
20    

The company receives $5,000 from a customer for an advance order for services to be provided in January and February.
25     Collections from customers on account (see January 9 transaction): $4,800
30a    

The last 2 weeks wages earned by employees are $1,065 per employee and will be paid on February 3.
30b     A $1,355 utility bill for January arrived. It is due on February 15.
Additional Information for adjusting entries at January 31:
a. Supplies on hand on January 31 total $540.
b.

The company completed 60% of the deliveries for the customer who paid in advance on January 20.
c. Interest is accrued for the bank loan. (Assume a full month for the 1st State Bank loan.)
d. Record January depreciation.
e. Adjust the prepaid asset (Rent and Insurance) accounts as needed.
6. Prepare the adjusted trial balance, using the revised set of t-account balances.

In: Accounting

Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in...

Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. The resulting balance sheet at the beginning of 2012 is provided below:
Francine’s Fast Deliveries, Inc.
Balance Sheet
at January 1, 2012
  Assets:    Liabilities:
   Cash $ 950    Accounts Payable $ 400
   Accounts Receivable 500    Stockholders’ Equity:
   Supplies 300    Contributed Capital $ 1,000
   Retained Earnings 350
  Total Assets $ 1,750    Total Liabilities & Stk. Equity $ 1,750
January Transactions for Francine’s Fast Deliveries, Inc. (FFD)
  Date
1     Owners invest $19,000 of additional cash in the business.
2a     Supplies are purchased for $600 on account.
2b     Insurance is paid for 12 months beginning January 1: $6,240 (Record as an asset)
2c     Rent is paid for 3 months beginning in January: $2,700 (Record as an asset)
2d     Two employees are hired. Each employee will be paid $940 per month
3     FFD borrows $22,000 from 1st State Bank at 6% annual interest.
6    

A delivery van is purchased for cash. Including tax the total cost was $31,200. It will be used for 4 years and will be depreciated monthly using straight-line with no salvage value. A full month of depreciation will be charged in January.
7     $350 of the receivables from December’s sales are collected.
8     $320 of the accounts payable from December are paid.
9     Performed services for customers on account. Mailed invoices totaling $8,400.
10     Services are performed for cash customers: $5,880.
16     Wages for the first half of the month are paid on January 16: $940.
20    

The company receives $2,300 from a customer for an advance order for services to be provided in January and February.
25     Collections from customers on account (see January 9 transaction): $3,360
30a    

The last 2 weeks wages earned by employees are $470 per employee and will be paid on February 3.
30b     A $590 utility bill for January arrived. It is due on February 15.
Additional Information for adjusting entries at January 31:
a. Supplies on hand on January 31 total $180.
b.

The company completed 60% of the deliveries for the customer who paid in advance on January 20.
c. Interest is accrued for the bank loan. (Assume a full month for the 1st State Bank loan.)
d. Record January depreciation.
e. Adjust the prepaid asset (Rent and Insurance) accounts as needed.
6. Prepare the adjusted trial balance, using the revised set of t-account balances.

In: Accounting

Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in...

Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. The resulting balance sheet at the beginning of 2012 is provided below:
Francine’s Fast Deliveries, Inc.
Balance Sheet
at January 1, 2012
  Assets:    Liabilities:
   Cash $ 950    Accounts Payable $ 400
   Accounts Receivable 500    Stockholders’ Equity:
   Supplies 300    Contributed Capital $ 1,000
   Retained Earnings 350
  Total Assets $ 1,750    Total Liabilities & Stk. Equity $ 1,750
January Transactions for Francine’s Fast Deliveries, Inc. (FFD)
  Date
1     Owners invest $19,000 of additional cash in the business.
2a     Supplies are purchased for $600 on account.
2b     Insurance is paid for 12 months beginning January 1: $6,240 (Record as an asset)
2c     Rent is paid for 3 months beginning in January: $2,700 (Record as an asset)
2d     Two employees are hired. Each employee will be paid $940 per month
3     FFD borrows $22,000 from 1st State Bank at 6% annual interest.
6    

A delivery van is purchased for cash. Including tax the total cost was $31,200. It will be used for 4 years and will be depreciated monthly using straight-line with no salvage value. A full month of depreciation will be charged in January.
7     $350 of the receivables from December’s sales are collected.
8     $320 of the accounts payable from December are paid.
9     Performed services for customers on account. Mailed invoices totaling $8,400.
10     Services are performed for cash customers: $5,880.
16     Wages for the first half of the month are paid on January 16: $940.
20    

The company receives $2,300 from a customer for an advance order for services to be provided in January and February.
25     Collections from customers on account (see January 9 transaction): $3,360
30a    

The last 2 weeks wages earned by employees are $470 per employee and will be paid on February 3.
30b     A $590 utility bill for January arrived. It is due on February 15.
Additional Information for adjusting entries at January 31:
a. Supplies on hand on January 31 total $180.
b.

The company completed 60% of the deliveries for the customer who paid in advance on January 20.
c. Interest is accrued for the bank loan. (Assume a full month for the 1st State Bank loan.)
d. Record January depreciation.
e.

Adjust the prepaid asset (Rent and Insurance) accounts as needed.

Prepare end-of-January financial statements. (Balance Sheet only, items to be deducted must be indicated with a negative amount.)

In: Accounting

Snowman Co. had the following December 31, 2017, account balances (listed in alphabetical order): Account 12/31/2017...

Snowman Co. had the following December 31, 2017, account balances (listed in alphabetical order):

Account

12/31/2017 Balance

Administrative and Office Salaries Expense

$29,500

Advertising Expense

14,100

Bad Debt Expense

1,900

Common Stock, $10 par

110,000

Cost of Goods Sold

191,200

Depreciation Expense: Buildings & Office Equipment

10,000

Depreciation Expense: Sales Equipment

8,500

Dividend Revenue

900

Gain on Sale of Sales Equipment (pretax)

5,000

Interest Expense

4,900

Office Supplies Expense

1,800

Property Tax Expense

7,700

Retained Earnings, January 1, 2017

428,900

Sales

366,700

Sales Discounts Taken

5,200

Sales Salaries Expense

16,500

Sales Supplies Expense

4,600

Transportation out (deliveries)

6,000

Additional information not included in the above.

The tax rate is 30%

On April 1, 2017, the company sold Division M (a component of the company), which had been unprofitable for several years. For the first 3 months of 2017, Division M had operating revenues of $25,000 and operating expenses of $33,800. The division assets had a historical cost of $80,000, had been depreciated for seven years using the straight line method, allowing for a $5,000 residual value, and a ten year life. The assets were sold for $45,000.

In the middle of December, 2017, the company incurred a material $5,500 pretax loss as a result of a flood on a river that floods once every 25 years.

During a review of the 2017 entries to ascertain what adjusting entries needed to be made, it was discovered that Legal Fees of $14,000, incurred in 2015 and associated with researching a potential patent were capitalized to the account patents in 2015. The patent was never applied for and the product idea was scrapped. In 2016 patent amortization was recorded, based on a twenty-year patent life. No amortization entry was recorded in 2017.

The company paid cash dividends of $.90 per share on its common stock. All the stock was outstanding for the entire year.

While making its December 31, 2017 adjusting entries, the company conducted an analysis of its recent favorable experience with uncollectible accounts receivable, and decided to reduce the percentage used in computing bad debt expense. The use of the new percentage resulted in the $1,900 bad debt expense being $500 less than the amount that would have been calculated using the old percentage.

During 2017, the company elected to switch from the completed contract method to the percentage of completion method for the work performed by its Consulting Division. This division has been in existence since 2015. The effect of this change was an increase in revenue in 2015 of $15,000, an increase in 2016 of $20,000 and an increase in 2017 of $25,000. The percentage of completion method was applied to all consulting revenue recorded in 2017. Consulting revenue is combined with other sales revenue for reporting purposes on the financial statements.

REQUIRED:

Prepare a single step Income Statement for Snowman Co. being sure to differentiate between Selling Expenses and Administrative Expenses.

Prepare a Statement of Retained Earnings for Snowman Co.

Where needed, provide schedules to show the details of your calculations and numbers.

Which of the “additional information” items would require footnote disclosure? Briefly explain what the footnote would need to state or explain.

In: Accounting

Elasticity and Pricing

Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair. Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your company’s product at the current price is 1.4, would you advise the company to raise the price, lower the price, or to keep the price the same? What if the elasticity were 0.6? What if it were 1? Explain your answer

In: Economics