Concept explainers
To identify:
The signals for any buy or sell by using table
Introduction:
Industry Analysis: It is a most important puppet which was used to compare a specified company's performance with the other's market in the same industry market.
Explanation of Solution
Given:
Table
Detailed explanation / work out of the complete problem.
Days | Moving average formula | Moving average | Action |
Selling point | |||
Buying point | |||
We see that in
And further, we see that
From the above, the selling point is
Want to see more full solutions like this?
Chapter 12 Solutions
EBK INVESTMENTS
- Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Network, Inc. and have assembled the following data. LOADING... (Click to view the income statement data.) Data Table Selected income statement data for the current year: Digitized Very Network Net Sales Revenue (all on credit) $418,290 $494,940 Cost of Goods Sold 210,000 256,000 Interest Expense 0 15,000 Net Income 62,000 70,000 (Click to view the balance sheet and market price data.) Data Table Selected balance sheet and market price data at the end of the current year: Digitized Very Network Current Assets: Cash $24,000 $21,000 Short-term Investments 42,000 19,000 Accounts Receivables, Net 36,000 46,000 Merchandise Inventory 67,000 98,000 Prepaid Expenses 22,000 18,000 Total…arrow_forwardConsider again the example introduced in Section 7.5 of a credit card company that has a database of information provided by its customers when they apply for credit cards. An analyst has created a multiple regression model for which the dependent variable in the model is credit card charges accrued by a customer in the data set over the past year (y), and the independent variables are the customers annual household income (x1), number of members of the household (x2), and number of years of post-high school education (x3). Figure 7.23 provides Excel output for a multiple regression model estimated using a data set the company created. a. Estimate the corresponding simple linear regression with the customers annual household income as the independent variable and credit card charges accrued by a customer over the past year as the dependent variable. Interpret the estimated relationship between the customers annual household income and credit card charges accrued over the past year. How much variation in credit card charges accrued by a customer over the past year is explained by this simple linear regression model? b. Estimate the corresponding simple linear regression with the number of members in the customers household as the independent variable and credit card charges accrued by a customer over the past year as the dependent variable. Interpret the estimated relationship between the number of members in the customers household and credit card charges accrued over the past year. How much variation in credit card charges accrued by a customer over the past year is explained by this simple linear regression model? c. Estimate the corresponding simple linear regression with the customers number of years of posthigh school education as the independent variable and credit card charges accrued by a customer over the past year as the dependent variable. Interpret the estimated relationship between the customers number of years of posthigh school education and credit card charges accrued over the past year. How much variation in credit card charges accrued by a customer over the past year is explained by this simple linear regression model? d. Recall the multiple regression in Figure 7.23 with credit card charges accrued by a customer over the past year as the dependent variable and customers annual household income (x1), number of members of the household (x2), and number of years of post-high school education (x3) as the independent variables. Do the estimated slopes differ substantially from the corresponding slopes that were estimated using simple linear regression in parts (a), (b), and (c)? What does this tell you about multicollinearity in the multiple regression model in Figure 7.23? e. Add the coefficients of determination for the simple linear regression in parts (a), (b), and (c), and compare the result to the coefficient of determination for the multiple regression model in Figure 7.23. What does this tell you about multicollinearity in the multiple regression model in Figure 7.23? f. Add age, a dummy variable for sex, and a dummy variable for whether a customer has exceeded his or her credit limit in the past 12 months as independent variables to the multiple regression model in Figure 7.23. Code the dummy variable for sex as 1 if the customer is female and 0 if male, and code the dummy variable for whether a customer has exceeded his or her credit limit in the past 12 months as 1 if the customer has exceeded his or her credit limit in the past 12 months and 0 otherwise. Do these variables substantially improve the fit of your model?arrow_forwardUse the following selected data from Business Solutions's income statement for the three months ended March 31, 2022, and from its Complete this question by entering your answers in the tabs below. March 31, 2022, balance sheet to complete the requirements. Computer services revenue Net sales (of goods) Total sales and revenue Cost of goods sold. Net income Quick assets Current assets Total assets Current liabilities Total liabilities. Total equity Required 1 Required: 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. 2. Compute the current ratio and acid-test ratio. 3. Compute the debt ratio and equity ratio. 4. What percent of its assets are current? What percent are long term? Required 2 Complete this question by entering your answers in the tabs below. $ 25,307 18,693 44,000 Required 3 Gross margin ratio Net profit margin ratio 14,052 18,833 90,924 95,568 120,268 875 875 119,393 % Compute the gross margin ratio (both with and…arrow_forward
- Use the following information to answer the questions that follow. A. Calculate the operating income percentage for each of the stores. Comment on how your analysis has changed for each store. B. Perform a vertical analysis for each store. Based on your analysis, what accounts would you want to investigate further? How might management utilize this information? C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.arrow_forwardPresented in the left graph are trends in sales revenue and cash received from customers over a six-year period. In the right graph are trends in cost of goods sold and cash paid for inventory over a six-year period. All inventory is purchased with cash.arrow_forwarda sales person records the following daily expenditures (in Php) during a ten day trip.arrow_forward
- Use the following information to determine the Prior Year and Current Year trend percents for net sales using the Prior Year a base year. (Enter the answers in thousands of dollars.) Current Prior ($ thousands) Year Year $1,155,080 $431,000 565,989 Net sales Cost of goods sold 127,576 Trend Percent for Net Sales: Choose Numerator: IChoose Denominator: Trend Percent %3D Current Year: %3D Prior Year: % %Darrow_forwardCompute the following transactions using multi-step income statement2. Calculate Sales Returns and Allowances and Cost of Merchandise Sold if,Sales are Php 750,000, Sales Discounts are Php 9,000, Net Sales are Php 736,000 andGross Profit is Php 310,000.arrow_forward6. The following is the adjusted trial balance data for Nino's Pizzenia as of December 31, 2019. NINO'S PIZZERIA Adjusted Trlal Balance Year Ended December 31,2019 Debit Credit S 775,984 45,688 200,460 135,624 Cash Accounts Receivable Buildings Merchandise Inventory Accounts Payable Common Stock Sales Interest Revenue Rent Revenue Sales Salaries Expense office Supplies Expense Sales Discounts Interest Expense Sales Returns and Allowances, Cost of goods sold Rent Expense Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $437,880 410,542 555,696 84,652 86,900 24,500 6,270 102,890 4,577 105.854 122,853 20.000 10.555 2,780 17:635 $1,575,670 $1,575,670arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegePrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningEssentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning