Pager (2003) reported that white men with a felony record were as likely to receive a job interview than were black men without a felony record. Using the data below, replicate her findings. Specifically, among 149 black respondents without a felony record, the probability that a potential employer called them for a job interview was .14. Among 53 white respondents with a felony record, the probability that a potential employer called them for a job interview was .17.

A) What is the 95% confidence interval for the probability that black men without a felony were called back for a job interview?

B)Suppose Pager’s research hypothesis was that a criminal record was more important than race in determining the likelihood of employment. Thus, she expected that black men without felonies (BM) were more likely to be interviewed than white men with felonies (WMF). Test the Null Hypothesis of no difference in the likelihoods. State the Null and Research Hypotheses

C)Using a .01 alpha level, determine the critical value of the test.

D)Calculate the obtained value for your test.

E) Interpret the test results.

LEADERSHIP IMPLICATIONS IN COMPLEX PROJECTS: THE BOEING DREAMLINER AND CEO JIM MCNERNEY In defense of criticism of Boeing’s 787 production delays, CEO Jim McNerney explained: We are trying to come up with the strongest set of partnerships we can with the people that supply our major systems and structures. In defense, we are trying to respond to the pressures of governments buying fewer things at lower prices, with less favorable contract terms. And that pressure cannot just stop at Boeing. We have to find willing partners to share the burden. And on the commercial side, low-cost carriers and a very flattish global economy leads you to the same conclusion. So the ‘no-fly list’ is people who don’t want to play ball, who only want to hide behind the contractual language of their current programs. We’re going to give those who do want to work with us more business—or we’ll move some things in-house. This is the reality we all face. The majority of suppliers are beginning to have productive discussions with us. We have some holdouts, people who take the position that the pressure should only be absorbed by Boeing, notwithstanding the fact that 65 percent of most of our airplanes are built by suppliers…we both have to demand lots of productivity improvements to offset price pressure. Those that work with us in that way will find more volume. We are the biggest player. My message is, ‘Don’t bet against us. The Boeing Dreamliner Boeing Corporation was one of the world's largest manufacturers of commercial aircraft, ranking 27th on the Fortune 500 list in 2016. When it announced the delivery of its first 787 Dreamliner transporter to its first customer, All Nippon Airways, in September, 2011, it was almost 40 months later than originally planned, after a long series of unexpected delays. The actual development cost of the project had been estimated at about US$40 billion but came in over twice the original estimate. One year later, a malfunction was discovered in one of the aircraft's lithium batteries, which caught fire after takeoff. These problems led to months of grounding, imposed by the FAA (Federal Aviation Administration), of the entire Dreamliner fleet already in service. The Dreamliner was designed to be a revolutionary project in terms of physical characteristics, technology, management style, financing, design and engineering management, quality assurance, and assembly processes. Many of these initiatives were intentionally taken on to benefit from new developments in aviation technology and to speed up design and development; however, they posed unexpected challenges for both the company and the project team. A New Organizational Paradigm: Boeing adopted a new organizational paradigm for the development of Dreamliner and decided to outsource an unprecedented portion of the design, engineering, manufacturing, and production to a global network of 700 local and foreign suppliers. With more than 70% foreign development content, this decision turned Boeing's traditional supply chain into a development chain. Tier-1 suppliers became responsible for the detailed design and manufacturing of 11 major subassemblies, while Boeing only did system integration and final assembly. Furthermore, Boeing came up with a new risk and revenue sharing contract with its suppliers, called the “build-to-performance” model (as differentiated from the more typical “build-to-spec” or “build-to print” models). According to the model, contract suppliers bore the non-recurring R&D cost up-front, owned the intellectual property of their design, and got paid a share of the revenues from future aircraft sales. Under this model, the suppliers’ roles were dramatically changed from mere subcontractors to strategic partners who had a long-term stake in the project. This model created some risks, which caused extensive integration problems and additional delays. Finally, Boeing employed a new assembly method. Subcontractors were required to integrate their own subsystems and send their preassembled subsystems to a single final assembly site. The goal was to reduce Boeing's integration effort by leveraging subcontractors to do more work compared with previous projects. However, many of these subcontractors were not able to meet their delivery schedules due to lack of experience in subsystem design and integration, as well as insufficient guidelines and training. As a consequence, parts and assemblies, which were sent to Boeing for integration, were missing the appropriate documentation, including instructions for final assembly. Unanticipated Consequences Supply chain and design delays increased, as did Boeing’s financial losses, including penalties for late delivery of the aircraft. CEO McNerney had to face some hard facts based on earlier decisions. He acknowledged that his new paradigm may have been flawed, “We got a little bit seduced that it would all come together seamlessly and the same design rules would be applied everywhere in the world and corners wouldn’t be cut and financial realities wouldn’t hit certain folks. McNerney’s approach to workers, suppliers, and labor resources was notably off-putting, according to many in Washington State, Boeing’s corporate home. Since 2011 when Boeing opened its non-unionized South Carolina assembly plant where salaries were approximately $10/hour less than those of the unionized workers in Washington State, worker relationships have been troubled. While admirers have touted his efficiency and ability to deliver profits, alienated professionals at every level, along with union members, have described McNerney as “cold-blooded.” One labor specialist stated, “A lot of employees feel top management doesn’t value them, treats them as expendable [creating an atmosphere of] lowered trust, anger and disgruntlement. According to Richard Aboulafia, noted aerospace specialist, “Management believes if it continues to squeeze suppliers and labor, the problem[s] will be solved. Again, the track record here is not great. Most of the manufacturing world tell a very different story. Whether it’s with cars, aircraft or turbines, productivity improvements often come from the shop floor. That means convincing the people who build things to identify ways to reduce scrap, improve work flow and eliminate defects. To promote the kind of process improvements that happen in the factory, a work force needs incentives such as profit-sharing or other compensation. At the very least, machinists and engineers need to believe their work is valued. Taking away pensions at a time of record sales is simply a bad way to motivate workers to go the extra mile. Boeing right now embodies a strange combination of very good and very bad. McNerney’s management style created its own problems. He vacillated between maintaining his dispassionate, hands-off general management style with multiple-times per day meetings with executives during the Dreamliner grounding crisis. His revolving door policy for managers in charge of the 787 project (four in as many years) generated a sense of uncertainty at all levels in the company and increased pressure to meet goals quickly. This focus on urgency caused him to reflect, after having resolved the major problems in the Dreamliner, that the plane could have been completed sooner had Boeing listened more to the customer and less to innovative technology. He said, in a rare interview in 2014, “What I would like to have done is pursued 70 percent of the technology that still would have satisfied 95 percent of [customer desire]. It would have gotten to them quicker, and it would have cost us less…You get excited about these projects, and things creep into the design and you lose discipline sometimes. We just need to be reminded about that. As described by an anonymous former Boeing executive, “The sense I always got from him in meetings is that it could have been any business…If we’d been making cameras or autos or doing bond trading, it would have all been the same to him. The net effect is distancing from the people who come to work there every day, who bring their hearts and souls to it and want to make it more than a job.

Required

Explain the Project Risk Analysis and Management (PRAM) process and relate it to the case.

Note : Answers should be in word version format written and in details and in your own words

Since you are working on your MBA you have been asked to speak to the board of directors of your firm about various methods of analyzing the companies financial statements. One of the board members states she has heard about a technique called"common-size" financial statements, but knows nothing about it. She would like you to explain what they are, how they are prepared,how they differ from regular financial statements, and how they can help the board in its decision making. What your account say?

Headland Company reports pretax financial income of $76,500 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $15,700. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $23,400. 3. Fines for pollution appear as an expense of $10,500 on the income statement. Headland’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

A)Compute taxable income and income taxes payable for 2020.

B)Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

c)Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”

D)Compute the effective income tax rate for 2020

On January 1, 2020, Sweet Company issued 10-year, $2,020,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 16 shares of Sweet common stock. Sweet’s net income in 2020 was $475,300, and its tax rate was 20%. The company had 97,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020.

(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $970,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Sweet common stock. (Round answer to 2 decimal places, e.g. $2.55.)

Splish Company reports pretax financial income of $66,300 for 2020. The following items cause taxable income to be different than pretax financial income.

Splish’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

1. Compute taxable income and income taxes payable for 2020.

2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

3. Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”

4. Compute the effective income tax rate for 2020.

On January 1, 2020, Spalding Company sold 12% bonds having a maturity value of $1,000,000 for $1,075,815, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020 and they mature on January 1, 2025, with semiannual interest payable on July 1 and January 1 each year. The company uses the effective-interest method. Instructions:

a) Prepare a complete amortization schedule for these bonds in good form.

b) Prepare the journal entry needed to record the issuance of bonds on January 1, 2020.

c) Prepare the journal entry needed to record the payment accrual of interest on July 1, 2020. Show all calculations.

d) Determine how much interest expense will be on the income statement for the year ended December 31, 2020.

e) Show what will be on the balance sheet related to these transactions as of December 31, 2020. Indicate clearly if any assets or liabilities are current or noncurrent.

The following data applies to the two unrelated companies Aldi Ltd    Wooli Ltd:

All taxable and deductible temporary differences relate to the profit or loss. Assume a corporate tax rate of 30%.

1. For each company, prepare the journal entries to record the current and deferred tax for 30 June 2020. Show all calculations

2. For each company, prepare the income tax section of the statement of profit or loss and other comprehensive income for the year ended 30 June 2020, and show the note disclosure for the current and deferred components of income tax expense.

Purple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. Purple Company is Kirsten's only source of income.

Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations.

Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%.

When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar.

a. Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $37,520 deduction for qualified business income.

Kirsten's taxable income is $_150,080__, and her after-tax income is $______________

b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.

Note: Individual taxpayers received preferential treatment regarding the taxation of qualified dividends (0%,15%,20%). For single taxpayers, the 0 percent rate applies to the first $40,000 of taxable income.

Purple Corporation's after-tax income is $ 158,000 and Kirsten's after tax income is $_________________?

c. Purple Company is a C corporation and the corporation pays Kirsten a salary of $158,000.

Purple Corporation's after-tax income is $________________ and Kirsten's after-tax income is $________________?

Background:

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(The final assessment is applied in nature and encourages you to use the tools developed in the course content to analyse and make sense of the world around you. In 2020 economies around the world have experienced unprecedented shocks to their internal and external balance situations driven by necessary closures and shutdowns of economic activity to deal with the Covid 19 health crisis. Recovery from deep Global crisis can be uneven and some economies are better positioned to recover than others. Your final assessment task for IME is to apply the theory developed in the course to the current world events from the Australian Perspective)

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Exchange rate determination in the short run and the long run - What can theory tell us about current and likely future changes in the value of AUD– assessment of policy mechanisms such as interest rate changes that may impact on the value of the AUD (500 words):