ABC's transactions for the year ended December 31, 2001, include::

• Acquired 55% of Carla Vista Co.'s common stock for $290,000 cash which was borrowed from a bank.

• Issued 2,200 shares of its preferred stock for land having a fair value of $390,000.

• Issued 600 of its 10% debenture bonds, due 2XX6, for $600,000 cash.

• Purchased a patent for $420,000 cash.

• Paid $220,000 toward a bank loan.

• Sold available-for-sale securities for $2,200,000.

• Had a net increase in returnable customer deposits (long-term) of $250,000.

What is ABC’s net cash provided by investing activities for 2001?

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The Ashland MultiComm Services (AMS) marketing depart- ment wants to increase subscriptions for its 3-For-All telephone, cable, and Internet combined service. AMS marketing has been conducting an aggressive direct-marke ting campaign that includes postal and electronic mailings and telephone solic- itations. Feedback from these efforts indicates that including premium channels in this combined service is a very important factor for both current and prospective subscribers. After several brainstorming sessions, the marketing department has decided to add premium cable channels as a no-cost benefit of subscribing to the 3-For-All service. The research director, Mona Fields, is planning to conduct a survey among prospective customers to determine how many premium channels need to be added to the 3-For-All service in order to generate a subscription to the service. Based on past campaigns and on industry-wide data, she estimates the following: Number of Free Probability of Subscriptions Premium Channels 0.02 0.04 0,06 3. 0.07 4. 0.08 0.085 HOW 1. If a sample of 50 prospective customers is selected and no free premium channels are included in the 3-For-All service offer, given past results, what is the probability that a. fewer than 3 customers will subscribe to the 3-For-All service offer? reco Di App Dig b. O customers or 1 customer will subscribe to the 3-For-All Op Fin service offer? C. more than 4 customers will subscribe to the 3-For-All ser- dat vice offer? 1. d. Suppose that in the actual survey of 50 prospective cus- tomers, 4 customers subscribe to the 3-For-All service offer. What does this tell you about the previous estimate of the proportion of customers who would subscribe to the 3-For-All service offer? 2. 2. Instead of offering no premium free channels as in Problem 1, suppose that two free premium channels are included in the 3-For-All service offer. Given past results, what is the probability that 3. vices E depart- lephone, ing has ign that e solic- cluding a. fewer than 3 customers will subscribe to the 3-For-All service offer? b. 0 customers or I customer will subscribe to the 3-For-All service offer? C. more than 4 customers will subscribe to the 3-For-All service offer? portant several cided to cribing d. Compare the results of (a) through (c) to those of Problem 1. e. Suppose that in the actual survey of 50 prospective cus- tomers, 6 customers subscribe to the 3-For-All service offer. What does this tell you about the previous estimate of the proportion of customers who would subscribe to the 3-For-All service offer? conduct v many service sed on tes the f. What do the results in (e) ell you about the effect of offer- ing free premium channels on the likelihood of obtaining subscriptions to the 3-For-All service? 3. Suppose that additional surveys of 50 prospective customers were conducted in which the number of free premium chan- nels was varied. The results were as follows: Number of Free Number of Premium Channels Subscriptions 3. How many free premium channels should the research director recommend for inclusion in the 3-For-All service? Explain. nd no ervice The Ashland MultiComm Services (AMS) marketing depart- ment wants to increase subscriptions for its 3-For-All telephone, cable, and Internet combined service. AMS marketing has been conducting an aggressive direct-marke ting campaign that includes postal and electronic mailings and telephone solic- itations. Feedback from these efforts indicates that including premium channels in this combined service is a very important factor for both current and prospective subscribers. After several brainstorming sessions, the marketing department has decided to add premium cable channels as a no-cost benefit of subscribing to the 3-For-All service. The research director, Mona Fields, is planning to conduct a survey among prospective customers to determine how many premium channels need to be added to the 3-For-All service in order to generate a subscription to the service. Based on past campaigns and on industry-wide data, she estimates the following: Number of Free Probability of Subscriptions Premium Channels 0.02 0.04 0,06 3. 0.07 4. 0.08 0.085 HOW 1. If a sample of 50 prospective customers is selected and no free premium channels are included in the 3-For-All service offer, given past results, what is the probability that a. fewer than 3 customers will subscribe to the 3-For-All service offer? reco Di App Dig b. O customers or 1 customer will subscribe to the 3-For-All Op Fin service offer? C. more than 4 customers will subscribe to the 3-For-All ser- dat vice offer? 1. d. Suppose that in the actual survey of 50 prospective cus- tomers, 4 customers subscribe to the 3-For-All service offer. What does this tell you about the previous estimate of the proportion of customers who would subscribe to the 3-For-All service offer? 2. 2. Instead of offering no premium free channels as in Problem 1, suppose that two free premium channels are included in the 3-For-All service offer. Given past results, what is the probability that 3. vices E depart- lephone, ing has ign that e solic- cluding a. fewer than 3 customers will subscribe to the 3-For-All service offer? b. 0 customers or I customer will subscribe to the 3-For-All service offer? C. more than 4 customers will subscribe to the 3-For-All service offer? portant several cided to cribing d. Compare the results of (a) through (c) to those of Problem 1. e. Suppose that in the actual survey of 50 prospective cus- tomers, 6 customers subscribe to the 3-For-All service offer. What does this tell you about the previous estimate of the proportion of customers who would subscribe to the 3-For-All service offer? conduct v many service sed on tes the f. What do the results in (e) ell you about the effect of offer- ing free premium channels on the likelihood of obtaining subscriptions to the 3-For-All service? 3. Suppose that additional surveys of 50 prospective customers were conducted in which the number of free premium chan- nels was varied. The results were as follows: Number of Free Number of Premium Channels Subscriptions 3. How many free premium channels should the research director recommend for inclusion in the 3-For-All service? Explain. nd no ervice

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