Burlingham Bees 8.3

1.) The advantages of developing an expectations at a detailed level rather than at an overall level is that you can know exactly what you believe the account balance should be then you are able to just reconcile that exact number to the true balance to see if every transaction was record and stated correctly.

2). 43+29=72 games over the year 434,348/72=6,032 people per game

      6,032 * .25 = 1,508 + 6,032 = 7,540 (25% increase in weekend games)

Total sales per weekday game:

5,016 * .30 = 1,504.8 * 10 = 15,048 5,517.6 * .30 = 1,655.28 * 10 = 16,552.8

5,016 * .35 = 1,755.6 * 6 = 10,533.6 5,517.6 * .35 = 1,931.16 * 6 = 11,586.96

5,016 * .20 = 1,003.2 * 4 = 4,012.8 5,517.6 * .20 = 1,103.52 * 4 = 4,414.08

5016 * .15 = 752.4 * 2 =   1,504.8 5,517.6 * .15 = 827.64 * 2 = 1,655.28

      $31,099.2           34,209.12

31,099.2 * 36 + 34,209.12 * 7   = $1,359,035.04 for all weekday games

Total sales per weekend game: with promotions:

7,540 * .25 = 1,885 * 10 = 18,850 8,294 * .25 = 2,073.5 * 10 = 20,735

7,540 * .30 = 2,262 * 6 = 13,572 8,294 * .30 = 2,488.2 * 6 = 14,929.2

7,540 * .25 = 1,885 * 4 = 7,540 8,294 * .25 = 2,073.5 * 4 = 8,294

7,540 * .20 = 1,508 * 2 = 3,016 8,294 * .20 = 1,658.8 * 2 = 3,317.6

                42,978         47,275.8

42,978 * 19 + 47,275.8 * 10 = $1,289,340 for all weekend games

expected ticket revenue: 1,359,035.04 + 1,289,340 = $2,648,375.04

3.) Bees’ reported ticket revenue for 2008 would have to been within $125,000 of my expectation for me to consider the reported ticket revenue fairly stated. This number is roughly 5 percent of stated revenue. B) This reported revenue could be outside my reasonableness test if I was given incorrect data. This incorrect data could come from incorrect estimates on the percent of ticket types sold or estimations on how promotions increase ticket sales.

4.) The advantages of using analytical procedures as substantive test is that it gives the...