The number of transistors (in millions) made at a plant in Japan during the past 5 years follows

Problem 4.33 The number of transistors (in millions) made at a plant in Japan during the past 5 years follows:

Year Transistors
1 140
2 160
3 190
4 200
5 210

a) Forecast the number of transistors to be made next year, using linear regression.
b) Compute the mean squared error (MSE) when using linear regression.
c) Compute the mean absolute percent error (MAPE).


Click here for the solution: The number of transistors (in millions) made at a plant in Japan during the past 5 years follows

Seneca Inc. had the following data for 2010 (in millions)

Seneca Inc. had the following data for 2010 (in millions). The new CFO believes that the company could improve its working capital management sufficiently to bring its NWC and CCC up to the benchmark companies' level without affecting either sales or the costs of goods sold. Seneca finances its net working capital with a bank loan at an 8% annual interest rate, and it uses a 365-day year. If these changes had been made, by how much would the firm's pre-tax income have increased?

Acc Variables Base Level ($) Base Level CCC Benchmark CCC Benchmark ($)
Need to find:
Sales $100,000
COGS $ 80,000
Inventory $20,000 91.25 38.00
Acc Rec $16,000 58.40 20.00
Payables $ 5,000 22.81 30.00
Totals 126.84 28.00

Click here for the solution: Seneca Inc. had the following data for 2010 (in millions)

Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions)

Problem 18–5A (P18-5A) Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions).

Target Wal-Mart
Corporation Stores, Inc.
Income Statement Data for Year
Net sales $61,471 $374,526
Cost of goods sold 41,895 286,515
Selling and administrative expenses 16,200 70,847
Interest expense 647 1,798
Other income (expense) 1,896 4,273
Income tax expense 1,776 6,908
Net income $ 2,849 $ 12,731

Balance Sheet Data (End of Year)
Current assets $18,906 $ 47,585
Noncurrent assets 25,654 115,929
Total assets $44,560 $163,514

Current liabilities $ 11,782 $ 58,454
Long-term debt 17,471 40,452
Total stockholders' equity 15,307 64,608
Total liabilities and stockholders' equity $44,560 $163,514

Beginning-of-Year Balances
Total assets $37,349 $151,587
Total stockholders' equity 15,633 61,573
Current liabilities 11,117 52,148
Total liabilities 21,716 90,014

Other Data
Average net receivables $7,124 $ 3,247
Average inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354

Instructions
For each company, compute the following ratios. (Round answers to 1 decimal place, e.g. 10.5.)
Target Walmart
(1) Current
(2) Receivables turnover
(3) Average collection period
(4) Inventory turnover
(5) Days in inventory
(6) Profit margin
(7) Asset turnover
(8) Return on assets
(9) Return on common stockholders' equity
(10) Debt to total assets
(11) Times interest earned

Click here for the solution: Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions)