In reference to the year 2000 national census, the distribution of United States households according to type of living arrangement is given in the table below. An SRS of 500 households gives the observed frequencies, by household type, for the city of Aurora, Illinois.

Ethnic Origin    Census Percent    Observed frequency from sample

Married, with children                        25%                                                  95

Married, with no children                    20%                                                110

Single parent                                    5%                                                    35

Single individual                               15%                                                 65

One person                                      20%                                                 120

Other (roommate, etc.)                      15%                                                   75

Using a significance level of 0.05, test the claim that the Aurora distribution fits the distribution obtained by the census personnel.

The Brookfield Corporation is considering a four-year project with the following data; What is the project NPV using wacc of 11.3%?

Additional investment in fixed assets but no additional working capital $100,000

Straight-line depreciation rate 25% but zero salvage value after four years

Annual sales revenues (constant for every year) $75,000

Operating costs (excl. depreciation) (also constant) $25,000

Tax rate 21.0%

Trumbull Inc. has $4.8 million  EBIT, $1.2 million depreciation, a tax rate of .4, a capital expenditure of $0.7 million, and an increase in NOWC of $1.1 million. To the nearest 0.1 million, what is its free cash flow?

In the year 2011 the prices at which producers sold their output were quite real to those producers. If they had tried to sell their products at 1983 prices their customers and stockholders would have rightly thought the producers had lost touch with reality. Why, then, would an economist calculate the value of 2011 output at 1983 prices and call it “real" GDP?

A travel association reported the domestic airfare (in dollars) for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.

(a)

Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.

H₀: μ_d ≤ 0

H_a: μ_d > 0

H₀: μ_d ≠ 0

H_a: μ_d = 0

H₀: μ_d ≥ 0

H_a: μ_d < 0

H₀: μ_d = 0

H_a: μ_d ≠ 0

H₀: μ_d < 0

H_a: μ_d = 0

Calculate the test statistic. (Use current year airfare − previous year airfare. Round your answer to three decimal places.)

Calculate the p-value. (Round your answer to four decimal places.)

p-value =

Using a 0.05 level of significance, what is your conclusion?

Reject H₀. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.Do not reject H₀. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.     Reject H₀. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.Do not reject H₀. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.

(b)

What is the sample mean domestic airfare (in dollars) for business travel for each year?

current$ previous$

(c)

What is the percentage change in mean airfare for the one-year period? (Round your answer to one decimal place.)

A poll was taken this year asking college students if they considered themselves overweight. A similar poll was taken five years ago. Results are summarized below. Let α = .05.

a)Formulate a hypothesis testing to test whether the proportion increased significantly (proportion of Sample 1 is greater than proportion of Sample 2).

b)What is the value of the test statistic?

c)What is the critical value of the test?

d)What is your conclusion? Explain it in the context of the problem.

The following data set provides information on acres harvested and planted by year and value in the US. Year ASPARAGUS - ACRES HARVESTED ASPARAGUS - ACRES PLANTED 2015 21,700 23,500 2014 23,800 25,800 2013 24,500 26,800 2012 25,300 27,800 2011 26,800 28,400 2010 28,000 29,200 2009 29,200 30,700 2008 32,200 33,700 2007 38,600 40,900 2006 43,200 44,700 2005 49,300 51,700 2004 61,500 66,000 2003 58,000 62,000 2002 66,000 70,500 2001 70,150 75,150 2000 77,400 82,800 1999 75,890 79,590 1998 74,430 From the data set, use the planting data for the United States for recent years. Using a calculator or statistical software, find the equation for the linear regression line for 2010 to 2015. What is the y-intercept?

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 50 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.4 pounds, what is the probability that the sample mean will be each of the following?
Appendix A Statistical Tables

a. More than 58 pounds
b. More than 57 pounds
c. Between 55 and 57 pounds
d. Less than 53 pounds
e. Less than 49 pounds

(Round the values of z to 2 decimal places. Round your answers to 4 decimal places.)

Below is the information relating to The Funny Guys Ltd for the year ended 31 December 2019:

The Funny Guys Ltd

Comparative Statement of financial positions

as at 31 December 2019

                                                                                      2019                             2018

Assets

Cash                                                                           $1,885                          $2,875

Accounts receivable                                                   44,650                          29,250

Merchandise inventory                                              60,950                          51,325

Investments (long term)                                            40,300                          43,500

Property, plant, and equipment                               125,000                        112,500

Accumulated depreciation                                       (24,750)                        (20,000)

Total assets                                                         $248,035                       $219,450

Liabilities and Equity

Accounts payable                                                    $26,350                        $24,140

Income tax payable                                                    3,635                                   0

Accrued expenses                                                      6,050                            9,415

Share capital                                                           125,000                        125,000

Retained earnings                                                     87,000                          60,895

Total liabilities and equity                                  $248,035                      $219,450

The Funny Guys Ltd

Statement of comprehensive income

for the year ended 31 December 2019

Sales                                                                                                           $150,000

Less:

Cost of sales                                                              49,730                                     

Operating expenses (excluding depreciation)             7,335

Depreciation expense                                                $4,750

Interest expense                                                          2,720                          64,535

Income before income taxes                                                                           85,465

Income tax expense                                                                                          3,635

Profit after income tax                                                                                  $ 81,830

Additional data:

1. New equipment and machinery were purchased for cash during the year.
2. Investments were sold at cost.
3. There were not sales of equipment and machinery.
4. Accounts payable pertain to merchandise inventory creditors.

Required:

Prepare a Statement of cash flows for The Funny Guys Ltd for the year ended 31 December 2019 using the direct method.

The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each.

For the current tax year, Allwardt reports the following.

a. How much income is each beneficiary entitled to receive?
$ 322,500

b. What is the trust's DNI?
$

c. What is the trust's taxable income?
$

d. How much gross income is reported by each of the beneficiaries?
$