TABLE 13-11 A Computer Software Developer Would Like to Use the Number

question 2

Short Answer

TABLE 13-11
A computer software developer would like to use the number of downloads (in thousands) for the trial version of his new shareware to predict the amount of revenue (in thousands of dollars) he can make on the full version of the new shareware. Following is the output from a simple linear regression along with the residual plot and normal probability plot obtained from a data set of 30 different sharewares that he has developed:

-Referring to Table 13-11, what are, respectively, the lower and upper limits of the 95% confidence interval estimate for the average change in revenue as a result of a one thousand increase in the number of downloads?

Assess and eliminate intercompany transactions and unrealized profits in inventories and receivables.

Determine the effects of transactions between an investor and a joint operation on the financial statements.

Allocate acquisition differential arising from a joint venture.

Identify the requirements for reporting non-controlling interests in proportionately adjusted financial statements.

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Definitions:

Par Value

A nominal value assigned to a share of stock in the charter of the corporation, often used to determine legal capital.

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholder a proportion of the company's profits.

Treasury Stock

Stocks that the issuing corporation has distributed and then bought back, diminishing the number of shares available for trade on the public market.

Market Value

The present cost at which a product or service is available for purchase or sale in an open market.