Next 3 questions are based on this scenario: A hypothetical Poll interviewed 1012 randomly selected U.S. adults aged 18 and older. Based on this poll, it was learned that 61% of those interviewed believed in global warming. The other 39% thought that global warming would never happen.

Question:

What is the population?

Select one:

a. The 39% who thought global warming would never happen

b. The 1012 randomly selected U.S. adults

c. All U.S. adults

d. The 61% who said they believe in global warming

What is the sample?

Select one:

a. The 61% who said they believe in global warming

b. The 39% who thought global warming would never happen

c. The 1012 randomly selected U.S. adults

d. All U.S. adults

What is the statistic in this study?

Select one:

a. The proportion of U.S. adults who believe in global warming

b. The proportion of the 1012 randomly selected U.S. adults who believe in global warming

Problem 1.1: Making Sense of the Trade Deficit

a) Explain the difference between the current account and the capital and financial account in the balance of payments.

b) What is a trade deficit?

c) Assume a U.S. firm buys (imports) $5 million (in U.S. dollars) of foreign goods. That transaction by itself increases the trade deficit by $5 million. But, the $5 million will flow back to the United States to purchase either (i) U.S. goods and services or (ii) U.S. assets.

1. How does the way the $5 million comes back to the United States determine whether there will be balanced trade or a trade deficit?
2. How does the U.S. economy benefit from either transaction (the foreign purchase of U.S. goods and services [exports] or the purchase of U.S. assets)?

d) How does the “global savings glut” help explain the trade deficit?

e) Write a short "elevator conversation" in which you explain clearly to less informed people (on the elevator, in a few minutes) what a "trade deficit" really is.

On August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene’s 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition.

Why did Celgene acquire Receptos?

What accounting method was used, and for what amount, to record the acquisition?

What amount did Celgene include in pre-combination service compensation in the total consideration transferred? What support is provided for this treatment in the Accounting Standards Codification (see ASC 805-30-30, paragraphs 9-13)?

What allocations did Celgene make to the assets acquired and liabilities assumed in the acquisition? Provide a calculation showing how Celgene determined the amount allocated to goodwill.

Describe the nature of the in-process research and development product rights acquired by Celgene in its acquisition of Receptos.

How will Celgene account for the in-process research and development product rights acquired in the Receptos combination?

Suppose you were the financial Accountant for Max Company Pty. Ltd. The board of directors promoted you to position of Finance manager considering the satisfactory services that you rendered to the company. The CEO has asked you to analyze two proposed capital investments, Projects Naru and Oheema. The cost of capital for each project is 12%.

The projects’ initial cost and expected net cash flows are as follows. The two projects are mutually exclusive projects.

1. If you apply the pay criterion, which project will you choose? Why?
2. If you apply the NPV criterion, which project will you choose? Why?
3. If you apply the RR criterion, which project will you choose? Why?

Please give the answers with explanations

A Internet food delivery company advertises that it has 3 different diets that will result in weight loss if strictly followed. One diet is advertised as a moderate weight loss, a second offers a slightly more aggressive weight reduction program, and a third that is the most aggressive weight loss. The company gathers some data by taking a random sample from people using the different diets at the end of a two months trial. The data on weight loss are recorded below.

1. What type of data are these values?
2. Can these data be generalized? Explain.
3. Can cause and effect statements be made? Explain.
4. Conduct a test to see if the weight losses are equal with the three diets using a alpha of .05.
5. Construct 95% confidence intervals.
6. Write a brief conclusion to the CEO of this firm.

SUBJECT: LEADERSHIP

WORDS REQUIRED: 1500

Exercise:

What should you Do?

You have been at your company for close to five years and have had excellent reviews. You are at a midlevel management position and you like your job. It’s challenging and satisfying; you like your boss and your coworkers; your employees are great; and you have had satisfied customers and steady growth.

Nothing spectacular, but things are going very well. A new CEO has just joined the company and she has announced major changes: restructuring, moving people around, new departments and teams, a push for new products and services, new technology, several young top managers from the outside, office redesign to make things open, and much more.

Your comfortable, safe, and successful routine is being shaken up and everyone,

including you, is stressed out.

QUESTION: WHAT SHOULD YOU DO?

Christine, a newly appointed chief financial officer (CFO) at Winter Pty Ltd, is asked to evaluate and report on the company's present financial condition to the board of directors at an upcoming meeting. She discovers several instances where Paul, the chief executive officer (CEO), has made excessive risky business decisions, going against company policy resulting in the current liquidity problem facing the company.

Paul, Christine’s superior, is fearful of the board’s reactions to the adverse financial report, so he instructs Christine to modify the report to conceal the liquidity problem. Paul told Christine that the liquidity situation will ‘turn around in the near future’ and there is ‘no need to waste the board's time on the matter’. He makes it clear to Christine that if she refuses his request she will no longer have his support.

Describe Christine’s possible response using each of the six stages of Kohlberg’s stages of moral reasoning and development

Burke Enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. After 11 years, the company can sell the parts for $5 billion. Burke has a target debt/equity ratio of 1.2, a beta of 1.79. You estimate that the return on the market is 7.5% and T-bills are currently yielding 2.5%. Burke has two issuances of bonds outstanding. The first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. The second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. Kate, the CEO, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. Should the company take on the project?

1. ABC Inc., a mid-sized company in Toronto, Ontario, wants to ensure that its pay systems are internally equitable, gender-neutral, and externally competitive. The CEO, who believes the organization’s compensation system can help it achieve its goals, has hired you to re-design the base pay for the jobs in the organization. The company has about seventy jobs (Marketing, Sales, Finance, HR, and other administrative jobs), some of which are predominantly male and female jobs. Currently, all base pays of the employees were established based on what the candidate asked for and the CEO’s/HR Manager’s limited understanding of the market. Using a point-method job evaluation system and guidelines of Ontario Pay Equity Legislation, discuss in detail how you would go about establishing a base pay for XYZ Inc. which is internally equitable, gender-neutral, and externally competitive.