Following are transactions of The Barnett Company:

general entries for all transcations

Question 1 (this question has three parts, (a), (b), and (c))
(a) As a response to the recent COVID-19 outbreak, the Commonwealth Government put in place lockdown restrictions. Using the dynamic AD-AS framework, analyse and demonstrate the impact of the COVID-19 pandemic on the level of output (or real GDP), unemployment, and inflation.
[4+4 marks ]
(b) In response to the COVID-19 pandemic, in March 2020 the Commonwealth Government announced a fiscal stimulus which included income support for workers and businesses hit by the pandemic. Using the same dynamic AD-AS framework used in part (a), explain and illustrate the effect of the fiscal stimulus on the level of output (or real GDP), unemployment, and inflation.
[7 marks]
(c) Using the same dynamic AD-AS framework used in part (b), show what the impact of the fiscal stimulus would have been if Australia had no interactions in trade or finance with other economies (i.e. if Australia was a closed economy).

Case Analysis:

Valeant Pharmaceuticals is a specialty drug manufacturer operating in the fast-cycle pharmaceutical industry. In this business, size often matters and Valeant, along with most of the major players in the industry, has aggressively utilized mergers and acquisitions to acquire R&D capabilities and other key strategic resources, create synergies, capture market share, and use acquired legacy products to support future growth. Valeant’s 2010 merger with Biovail Corp was designed with all of these benefits in mind. To develop an effective strategic position, Valeant must address several important external factors including the global economy, advances in technology, population demographics and sociocultural influences, and shifting political/legal forces that affect not only the drug approval process but also the changing nature of healthcare. To address these considerations, Valeant must develop strategies in the areas of marketing and sales, product innovation, operational speed and efficiency, and M&A to position itself for future success The purpose of this case study is to determine if the company’s recent merger with Biovail, other M&A’s and restructuring efforts will yield the benefits promised to shareholders and enable the firm to compete more effectively in the marketplace.To reasonably determine the merit of its strategic approach, external environmental trends, competitor positions, financial indicators, internal resources, and company strategies must be considered.The results of the analysis can then be used to suggest measures which can improve Valeant’s strategic position and potential for ongoing success.

Question: Examine trends in the general and industry environments that impact Valeant’s pharmaceutical business.What conditions are pertinent to the strategic decisions presently facing the company?

Instant Brake Inc.’s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows:

During 2020, the following transactions occurred:

1. Purchased equipment for $20,700 cash.
2. Sold the investment on January 1, 2020, for $43,800, resulting in investment income of $19,020.
3. Sold equipment for $7,470 cash that had originally cost $39,720 and had $20,140 of accumulated depreciation.
4. Issued $19,000 of bonds payable at face value.

Required:
1. How much cash was paid in dividends?

2. Prepare a statement of cash flows for Instant Brake for the year ended December 31, 2020, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

The financial statements of the Precious Company appear below:

PRECIOUS COMPANY

Comparative Balance Sheet December 31,

_________________________________________________________________________

PRECIOUS COMPANY

Income Statement

For the Year Ended December 31, 2020

Additional information:

1. Cash dividends of $50,000 were declared and paid on common stock in 2020.
2. Weighted-average number of shares of common stock outstanding during 2020 was 50,000 shares.
3. Market price of common stock on December 31, 2020, was $16 per share.
4. Net cash provided by operating activities for 2020 was $70,000.

Required

Using the financial statements and additional information above, compute the following ratios for the Precious Company for 2020. Show all formulas and computations.

1. Current ratio .
2. Return on common stockholders' equity .
3. Price-earnings ratio .
4. Inventory turnover .
5. Accounts receivable turnover .
6. Times interest earned .
7. Profit margin .
8. Days in inventory .
9. Payout ratio .
10. Return on assets .

The end of the assignment

A manufacturing area needs to forecast workhours. This is a slightly different project. The data for several months is supplied below. Beside each of the actual numbers in black, the forecast is provided in red. The goal is to calculate three stats on the data: MAD, MAPE, and the tracking signal. Be careful since the data is listed beginning with the most recent. Please round to two decimal places. For MAPE, please convert to a percentage before rounding. Do not enter the percent sign.

Suppose the incidence rate of myocardial infarction (MI)
was 5 per 1000 among 45- to 54-year-old men in 2000.
To look at changes in incidence over time, 5000 men in this
age group were followed for 1 year starting in 2010. Fifteen
new cases of MI were found

7.12 Using the critical-value method with α = .05, test the
hypothesis that incidence rates of MI changed from 2000
to 2010.
7.13 Report a p-value to correspond to your answer to
Problem 7.12.
Suppose that 25% of patients with MI in 2000 died within
24 hours. This proportion is called the 24-hour case-fatality
rate.
7.14 Of the 15 new MI cases in the preceding study,
5 died within 24 hours. Test whether the 24-hour casefatality
rate changed from 2000 to 2010.
7.15 Suppose we eventually plan to accumulate 50 MI
cases during the period 2010–2015. Assume that the
24-hour case-fatality rate is truly 20% during this period.
How much power would such a study have in distinguishing
between case-fatality rates in 2000 and 2010–2015 if a
two-sided test with significance level .05 is planned?
7.16 How large a sample is needed in Problem 7.15 to
achieve 90% power?