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 Market Company Market Company Market Company Date Return Return Date Return Return Date Return Return 7/12 -.39 -.57 2/8 -.88 -1.16 10/1 .59 .42 7/13 .00 .29 2/9 -.98 -1.16 10/2 .49 .77 7/16 .92 1.15 2/10 .49 .26 10/3 1.19 1.19 7/17 -.92 -.73 2/11 .69 2.83 10/6 .19 -2.14 7/18 -2.18 1.08 2/12 -.39 -.22 10/7 -2.29 -.43 7/19 -.93 -.57 2/15 1.19 2.45 10/8 .59 .59 7/20 -.98 -1.17 2/16 .59 .59 10/9 -.39 -.20 7/23 .79 .42 2/17 -.39 -.25 10/10 .39 -.20 7/24 .29 .14 2/18 .39 .12 10/13 .00 -.19 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 certain to enter "O" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Days from announcement Abnormal returns (Ri - RM) Average abnormal Delta United American Sum return Cumulative abnormal return -4 -3 -2 -1 0 1 2 3 4

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 Market Company Market Company Market Company Date Return Return Date Return Return Date Return Return 7/12 -.39 -.57 2/8 -.88 -1.16 10/1 .59 .42 7/13 .00 .29 2/9 -.98 -1.16 10/2 .49 .77 7/16 .92 1.15 2/10 .49 .26 10/3 1.19 1.19 7/17 -.92 -.73 2/11 .69 2.83 10/6 .19 -2.14 7/18 -2.18 1.08 2/12 -.39 -.22 10/7 -2.29 -.43 7/19 -.93 -.57 2/15 1.19 2.45 10/8 .59 .59 7/20 -.98 -1.17 2/16 .59 .59 10/9 -.39 -.20 7/23 .79 .42 2/17 -.39 -.25 10/10 .39 -.20 7/24 .29 .14 2/18 .39 .12 10/13 .00 -.19 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 certain to enter "O" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Days from announcement Abnormal returns (Ri - RM) Average abnormal Delta United American Sum return Cumulative abnormal return -4 -3 -2 -1 0 1 2 3 4

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter8: Receivables

Section: Chapter Questions

Problem 8.15EX: Effect of doubtful accounts on net income During its first year of operations, Macks Plumbing Supply...

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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
Delta Market Company Date Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. United American Market Company Market Company Return Return Date Return Return Date Return Return 7/12 -49 -77 2/8 -98 -1.36 10/1 .69 33 7/13 .00 .39 2/9 -1.08 -1.36 10/2 .59 .83 7/16 2.30 2.58 2/10 .59 31 10/3 1.29 1.29 7/17 -2.30 -1.98 2/11 .79 4.73 10/6 .29 -3.97 7/18 -2.28 1.18 2/12 -49 -12 10/7 -2.39 -39 7/19 -92 -63 2/15 1.29 3.90 10/8 69 .69 7/20 -.98 -1.13 2/16 .69 .69 10/9 -49 -.34 7/23 .80 .46 2/17 -49 -27 10/10 .49 -.31 7/24 29 .01 2/18 .49 23 10/13 .00 -.29 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 certain to enter "0" wherever required. Do not round intermediate calculations and round your…
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