Problem 14-1 Cumulative Abnormal ReturnsDelta, United, and American Airlines announced purchases of planes on July 18 (7/18),February 12 (2/12), and October 7 (10/7), respectively.DeltaUnitedAmericanMarket CompanyMarket CompanyMarket CompanyDateReturn ReturnDateReturn ReturnDateReturnReturn7/12-.39-.572/8-.88-1.1610/1.59.427/13.00.292/9-.98-1.1610/2.49777/16.921.152/10.49.2610/31.191.197/17-.92-.732/11.692.8310/6.19-2.147/18-2.181.082/12-.39-.2210/7-2.29-.437/19-.93-.572/151.192.4510/8.59.597/20-.98-1.172/1659.5910/9-.39-.207/23.79.422/17-.39-.2510/10.39-.207/24.29.142/18.39.1210/13.00-.19Given the above information, calculate the cumulative abnormal return (CAR) for thesestocks as a group. All of the stocks have a beta of 1 and no other announcements aremade. (A negative answer should be indicated by a minus sign. Leave no cells blank -be certain to enter "O" wherever required. Do not round intermediate calculations andround your answers to 2 decimal places, e.g., 32.16.)Abnormal returns (Ri - RM)Days fromannouncementAverage abnormalDeltaUnitedAmericanSumreturn-4-3-2-101234Cumulativeabnormal return

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Answered: Problem 14-1 Cumulative Abnormal…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Aging of Receivables ScheduleJuly 31 Customer Balance NotPast Due 1-30DaysPast Due 31-60DaysPast Due 61-90DaysPast Due Over 90DaysPast Due Subtotals 1,050,000 600,000 220,000 115,000 85,000 30,000 Boyd Industries 36,000 36,000 Hodges Company 11,500 11,500 Kent Creek Inc. 6,600 6,600 Lockwood Company 7,400 7,400 Van Epps Company 13,000 13,000 Totals 1,124,500 607,400 233,000 121,600 96,500 66,000 Percentage uncollectible 1% 3% 12% 30% 75% Allowance for Doubtful Accounts 106,106 6,074 6,990 14,592 28,950 49,500 Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $8,240 before adjustment on July 31. Journalize the adjusting entry for uncollectible accounts as of July 31. If an amount box does not require an entry, leave it blank. July 31 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6
1. Use the trading data for Friday, October 20 and Friday, October 27 to answer the questions. Discovery Inc. October 27 Last Trade Time Chg Open 52-week High 52-week Low Discovery Inc. October 20 Last Trade Time Chg Open 52-week High 52-week Low Sales in 100s High Low $38.50 4:00 P.M. ET $1.56 $37.22 $76.19 $22.78 19,700 $40.10 $36.77 Sales in 100s High Low $42.00 4:00 P.M. ET $1.50 $42.50 $76.19 $22.78 23,600 $42.50 $42.00 a. What was the difference between the high and the low prices on October 20? $3.33 b. On October 27, what was the actual volume of Discovery Inc. shares posted? Write the volume in numerals. 2,360,000
Exercise 9-15 During its first year of operations, Mack’s Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and reported net income of $487,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible. --------------------------------------------------------------------- Using the data in Exercise 9-15, assume that during the second year of operations, Mack’s Plumbing Supply Co. had sales of $4,100,000, wrote off $34,000 of accounts as uncollectible using the direct write-off method, and reported net income of $600,000.a. Determine what net income would have been in the second year if the allowance method (using 1% of sales) had been used in both the first and second years.b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been…
w/ ル 16 AaBbCcDc AaBbCcDc AABBCC AABBCCC A 1 Normal 1 No Spac... Heading 1 Heading 2 , 三 Paragraph Styles The appropriate ratios for the company. 2018 2017 current ratio = 4.26470 4.82510 acid test ratio = 1.18602 1.43199 %3D days sales uncollected = net profit margin = 8.29954 1.87842 1.26872 gross profit margin debt to equity ratio = = 9.78681 8.15187 0.38634 0.38720 debt ratio = 0.62956 0.63186 equity ratio = 0.37044 0.36814 interest coverage ratio 6.50636 The Plan The Company is considering opening a new store. The directors of the company have contracted op nou an assessment of the financial performance of the company over the two (2) year period 2017 to 2018. Required: 1. Write a report to the Board of Directors on the performance of the company over the two years, highlighting areas of concern. 2. Would you recommend the opening of a new store? X. Ed 27° acer
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 (1) (2) (3) (4) Month of Sales Age of Account Amounts Percent of Amount Due April 0–30 $ 283,500 _______ March 31–60 63,000 _______ February 61–90 252,000 _______ January 91–120 31,500 _______ Total receivables $ 630,000 100% Calculate the percentage of amount due for each month. If the firm had $1,680,000 in credit sales over the four-month period, compute the average collection period. Average daily credit sales should be based on a 120-day period.
EXERCISE 12-4 The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here, From the information given, prepare income statement for the company. To save time and space, the expenses have been grouped together into two categories. LO Pra Show m HOV 4 5 ACCOUNT NAME INCOME STATEMENT DEBIT 7 CREDIT 23 Income Summary Sales 32,000.00 31,000.00 324,000.00 24 25 Sales Returns and Allowances 13,310.00 7,700.00 126,360.00 26 Sales Discounts Purchases Purchases Returns and Allowances Purchases Discounts 27 1,200.00 1,300.00 28 29 30 7,500.00 61,560.00 Freight In 31 50,884.00 299,314.00 58.188.00 357,500.00 Selling Expenses 357,500.00 32 General Expenses 33 357,500.00 34 Net Income 35 36 Sheet3 Sheet2 Sheett
HOMEWORK 8 - CHAPTER 8 Question 9 of 15 -1 Current Attempt in rrogress Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) $161,000 Allowance for doubtful accounts (beginning balance) ,11,300 Net credit sales ,942,000 Collections 912,000 Write-offs of accounts receivable 5,200 Collections of accounts previously written off 2,200 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. (a) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
P 15-10A End-of-Period Spreadsheet, Adjusting, Closing, and Reversing Entries Vicki’s Fabric Store shows the trial balance below as of December 31, 20-1. At the end of the year, the following adjustments need to be made: a., b. Merchandise inventory as of December 31, $31,600. c., d., e. Vicki estimates that customers will be granted $2,500 in refunds of this year’s sales next year and the merchandise expected to be returned will have a cost of $1,800. f. Unused supplies on hand, $350. g. Insurance expired, $2,400. h. Depreciation expense for the year on building, $20,000. i. Depreciation expense for the year on equipment, $4,000. j. Wages earned but not paid (Wages Payable), $520. k. Unearned revenue on December 31, 20-1, $1,200. Required Prepare an end-of-period spreadsheet. Prepare adjusting entries and post adjusting entries to an Income Summary T account. Prepare closing entries and post to a Capital T account. There were no additional investments this year. Prepare a…
%24 %24 %24 %24 %24 %24 %24 %24 decrease answers which should be indicated by a minus sign. Round your "percent" answ LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 Increase (Decrease) 2020 2019 Amount Percent Gross sales $000' 0000 0 Sales returns and allowances 000 0 00 Net sales $ 000 Cost of merchandise (goods) sold 0000 Gross profit 24 $000'S Operating expenses: $ 00% 2,200 Depreciation 009 Selling and administrative Research 550 Miscellaneous Total operating expenses 3,810 $ 3,400 Income before interest and taxes 2,190 $ 2,500 Interest expense Income before taxes 1,630 Provision for taxes 640 Net income 066 %$4 1,200 < Prev 4 of 10 here to search 直 0 EM d晶 @
Required information Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below] Suresh Company reports the following segment (department) income results for the year. Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department O Department P Department T Department M Department N $ 42,000 $ 80,000 Decision 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $ (22,600) Department o $ 76,000 Total $ 300,000 150,800 152,000 302,800 $ (2,800)
Problem 14-1 Cumulative Abnormal Returns Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. Delta United American Date Market Return Company Return Date Market Return Company Return Date Market Return Company Return 7/12 −.38 −.55 2/8 −.87 −1.14 10/1 .58 .43 7/13 .00 .28 2/9 −.97 −1.14 10/2 .48 .75 7/16 .85 1.06 2/10 .48 .27 10/3 1.18 1.18 7/17 −.85 −.68 2/11 .68 2.68 10/6 .18 −1.99 7/18 −2.17 1.07 2/12 −.38 −.23 10/7 −2.28 −.44 7/19 −.92 −.58 2/15 1.18 2.36 10/8 .58 .58 7/20 −.97 −1.14 2/16 .58 .58 10/9 −.38 −.21 7/23 .78 .43 2/17 −.38 −.26 10/10 .38 −.21 7/24 .28 .15 2/18 .38 .13 10/13 .00 −.18 Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. All of the stocks have a beta of 1 and no other announcements are made. (A negative answer should be indicated by a minus sign. Leave no cells blank - be…
1. Use the trading data for Friday, October 20 and Friday, October 27 to answer the questions. Discovery Inc. Discovery Inc. October 20 October 27 Last Last Trade Time Trade Time Chg Chg Open Open 52-week High 52-week High 52-week Low 52-week Low Sales in 100s High Low Sales in 100s High Low $38.50 4:00 P.M. ET $1.56 $37.22 $76.19 $22.78 19,700 $40.10 $36.77 $42.00 4:00 P.M. ET $1.50 $42.50 $76.19 $22.78 23,600 $42.50 $42.00

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