Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Horton Homes is a construction company. While many construction companies recognize revenue using the percentage of completion principle, Horton Homes' revenue recognition policy is based

Horton Homes is a construction company. While many construction companies recognize revenue using the percentage of completion principle, Horton Homes' revenue recognition policy is based on the closing of the sale. Homes that are not sold yet are treated as inventory and should be a good indicator of potential revenue. Horton Homes would like to build a linear regression model for revenue. You use history inventory and ash values to determine if these variables should be used in the model. Using the data analysis regression functionality in Excel, the following regression statistics were generated:
\table[[,,Standard,,],[Coefficients,Error,t Stat,P-value,],[Intercept,-2.7E+09,1.02E+09,-2.60848,0.034991],[Cash,-0.20306,0.723724,-0.28057,0.787151],[Inventory,1.971679,0.166272,11.85814,6.89E-06
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions