Tillie’sTrilbies estimates that revenues and expenditures for the next fiscal year are:

Total Revenue $6,800,000

Cost of Materials 5,000,000

Cost of Labor 1,000,000

Advertising 100,000

Insurance 50,000

Rent 350,000

Miscellaneous Expenses 100,000

a. Calculate Tilly’s accounting profit.

b. Suppose that in order to open her trilby business Tilly gave up a $250,000 per year job as a buyer at a high-end department store. Calculate Tilly’s economic profit.

c. Tilly is considering purchasing a building across the street and moving her company into that new location. The cost of the building is $5,000,000, which will be fully financed at a simple interest rate of 5 percent per year. Interest payments are paid annually on the last day of Tilly’s fiscal year. The first interest payment will be due next year. Principal will be repaid in 10 equal installments beginning at the end of the fifth year. Calculate Tilly’s accounting profit and economic profit for the next fiscal year.

d. Based upon your answer to part c, should Tilly buy the new building? Explain.

The farmer produces 899 bushels of wheat at a total cost of $6 per bushel. He sells all of the wheat to Firm F for $11 per bushel. Firm F produces 500 pounds of flour from the wheat at a total cost of $23 per pound (including the amount paid to the farmer for the wheat). Firm F sells 475 pounds of flour to consumers for $31 per pound. There are no other firms in this simple economy. What is the value of investment spending?

On January 1, 2014, Stark Company purchased equipment for a total cost of $155,000. The equipment had an estimated useful life of 7 years and an estimated residual value of $43,000. Straight-line depreciation was used. On September 1, 2020, Stark Company disposes of the equipment. Required: Prepare the journal entry to record the disposition on September 1, 2020 assuming the equipment was sold for $39,000 cash. Prepare the journal entry to record the disposition on September 1, 2020 assuming the equipment was exchanged for $30,000 cash and a machine valued at $30,000

The table shows the total 4-year cost (in thousands of dollars) and the Graduation rate (nearest percentage) from 4 randomly selected colleges/universities in the U.S.

The mean of x is 138.5 The standard deviation of x is 78.742

The mean of y is 66 The standard deviation of y is 27.092

The deviations and the z-scores for each x and y value are given below: Note: I tried my best with the tables below. BlackBoard has some issues with some of the font and symbols that were used.

a) Show the equations along with plugging the values into the corresponding equation on how the mean of the y values and the standard deviation of the y values were obtained. You may use a table above to help you with the standard deviation.

b) Find the correlation coefficient. You may use any of the tables above for help or any other equation method (Just stating the answer from a graphing calculator/technology will receive only 0 or 1 point for this question). Round the answer to 3 decimal places.

1. The following equation describes a firm’s total cost.

TC = 500 + 10Q + Q²

a. If the firm is a price taker and other firms in the industry sell output at a price of $100, what price should the manager of this firm put on the product?

b. What level of output should be produced to maximize profits (or minimize losses)?

c. Should the firm keep producing or shut down? Hint: Is P ≥ AVC?

d. Calculate profit (or losses)?

e. The firm sells orange juice, which is a perfect substitute, at a farmers market. What type of market is this firm operating in?

2. The following equations describe a firm’s demand and total cost.

P = 1,000 – 10Q

TC = 500 + 10Q + Q²

a. What level of output should be produced to maximize profits (or minimize losses)?

b. What is the market price?

c. Should the firm keep producing or shut down? Hint: Is P ≥ AVC?

d. Calculate profit (or losses)?

e. The firm sells cereal and competes with other firms selling slightly differentiated cereal products. What type of market is this firm operating in?

a monopoly market demand is p = 200-2q. Total Cost is TC =40Q + 100. In equilibrium what is the producer surplus and consumer surplus?

Management of Oriole, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $187,585,296. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table.

What is the IRR of this project? (Round answer to 2 decimal places, e.g. 15.25%.)

A capital investment project has total installed cost of $25 million and a terminal value of $16 million at the end of its 10-year life. The project is expected to generate $5 million in net cash flows after tax each year. The firm’s marginal tax rate is 40 percent, and its cost of capital is 7 percent. Calculate the profitability index of this project.

You have been saving to buy a house. The total cost will be $10 million. You currently have about $2.3 million. If you earn 5% on your money.

(i)how long will you have to wait until you are able to buy the house?

(ii) At 16% how long will you have to wait?

1. Ella Company had 160 units in beginning inventory at a total cost of $320. The company purchased 400 units at a total cost of $1,500. At the end of the year, Ella had 120 units in ending inventory

Beginning 160 units ($2.00) $ 320

Purchases 500 units ($3.00) 1,500

Cost of goods available for sale $1,820

A physical count of ending inventory on June 30 reveals that there are 100 units on hand.

REQUIREMENTS:

Calculate the cost of ending inventory and the cost of goods sold under FIFO, LIFO, and Average Cost. Answer the three questions below.

1. SHOW WORK - Calculate the amount allocated to ending inventory as of June 30 using:
   1. FIFO
   2. LIFO
   3. Average Cost

1. SHOW WORK - Calculate the amount allocated to cost of goods sold for the month of June using:
   1. FIFO
   2. LIFO
   3. Average Cost

1. Which inventory cost method would result in the highest net income?

1. Which inventory cost method would result in inventories approximating current cost on the balance sheet?

1. Which inventory cost method would result in Ella paying the least taxes in the first year?

1. The following information is available for Manning Company:

Beginning inventory $ 120,000Cost of goods sold 550,000Ending inventory 140,000Sales 750,000

InstructionsSHOW WORK - Compute each of the following: (a) Inventory turnover. (b) Days in inventory

(c) EXPLAIN WHAT EACH RATIOS MEAN IN WORDS