In early 2018 you are hired as the new Controller for ABC, Co. You discover a variety of inventory errors. ABC uses the periodic method and uses a Purchases account to accumulate inventory purchases during the year. ABC has a 12/31 year end.

1. Purchases in 2016 are overstated by $10,000 since an invoice was entered and paid twice in error. The error was discovered in 2017 and the vendor gave the company a refund in 2017 for the overpayment. The company credited Purchases in 2017 when the refund was processed.

2. The physical count of inventory at 12/13/16 is understated by $30,000.

3. Purchases in 2017 are understated by $6,000. These items were received in December 2017, but were recorded in the Purchases Account in January 2018 when the invoice was paid.

4. The physical count of ending inventory at 12/31/17 is understated by $24,000.

5. A shipment to a customer left ABC’s warehouse on 12/27/2017 and was in transit on 12/31/2017 and was not included in ABC’s ending inventory. This shipment had terms 2/10, n/30, FOB shipping point.

6. Ending inventory as reported in the 2017 Annual Report amounted to $300,000. The 2017 Annual Report was issued before the above errors were identified.

Prepare the necessary prior period adjustments at 1/1/2018 related to the above items and any other correcting journal entry which may be required in 2018.

Early in the 2020, Baladna Co. prepared an expansion plan. The plan requires an increase in in both property, plant and equipment and inventory by $190,000,000 and $10,000,000 respectively. The following three alternative financing plans have been suggested by the firm’s investment bankers:

Plan I: issue preferred stock at par.

Plan II: issue common stock at $10 per share.

Plan III: issue a 16% long-term bonds, due in 20 years, at par ($1,000).

Which financing alternative costs Baladna Co. less: bonds payable or preferred stock? Why? (show computations).

Early in the 2020, Baladna Co. prepared an expansion plan. The plan requires an increase in in both property, plant and equipment and inventory by $190,000,000 and $10,000,000 respectively. The following three alternative financing plans have been suggested by the firm’s investment bankers:

Plan I: issue preferred stock at par.

Plan II: issue common stock at $10 per share.

Plan III: issue a 16% long-term bonds, due in 20 years, at par ($1,000).

Changes resulting from the three alternative plans give the following earnings per share (EPS): Plan A—0.73, Plan B—0.69, and Plan C—0.73. Based on this information, what are the main advantages and disadvantages of each plan?

Doing the work on Linux in Putty:

You are to create a hard link to one of your existing files on someone else's directory (or vice versa). In other words, you know that you can link a file within your own directories, but you can also have a link to one of your files on other areas of the unix system as long as you have permissions to write to that directory (in this case, your partner).

Create a subdirectory called temp where you can place this temporary link. Remember that you do not link a file to another file. You create a hard link to an existing file. So, user A has file1 that he/she wants to give access to user B. User B has to open certain directory permissions, for this to happen, then User A can create the link on user B directory (user A NEVER goes to user B directories typing cd), but if permissions are opened correctly all the commands will be done from user A directory without shell error messages such as “can not access..”.

We cannot get the ln part to work. How do you share the hard link with the other user???

1) The boiling point of an aqueous solution is 101.98 ∘C. What is the freezing point? Consult the table of colligative constants.

freezing point:   °C

2)

Quinine is a natural product extracted from the bark of the cinchona tree, which is native to South America. Quinine is used as an antimalarial agent.

When 0.829 g of quinine is dissolved in 25.0 g of cyclohexane, the freezing point of the solution is lowered by 2.13 ∘C. Look up the freezing point and Kf constant for cyclohexane in the Colligative Constants table.

Calculate the molar mass of quinine.

molar mass:

g/mol

3)

If a 0.770 m aqueous solution freezes at −2.30 ∘C, what is the van't Hoff factor, i, of the solute?

Consult the table of K_f values.

i=

Platinum is a rare metal. Its 2 biggest uses are in jewelry and in the automotive industry, where it is used in the manufacture of automobile engines.

From August 2016 to June 2019, global platinum prices decreased by 30%.

From July 2019 to October 2019, global platinum prices increased by 22%.

Assuming that the market for platinum is highly competitive, use supply and demand concepts to explain whether the following supports an increase in the price of platinum or a decrease in the price of platinum. Explain why.

1. Millennials (individuals born between 1980 -2000) prefer platinum because they like its finish and ability to hold intricate jewelry designs.
2. The price of gold increased by 50%
3. Platinum mines in South Africa, which supplies 70% of the world’s platinum, were affected by a long strike by miners.
4. Lower demand for diesel engines which use platinum
5. South Africa places a special tax of 10% per pound of platinum which is paid by sellers of platinum.

OpenSeas, Inc., is evaluating the purchase of a new cruise ship. The ship would cost $400 million today. OpenSeas expects annual cash flows from the new ship to be $70 million and these cash flows will last forever. The cost of capital is 16%.

What is the IRR of the new cruise ship? Please make your answer in the unit of percent.

______%

Following question 4, suppose the company has a desired payback period of 5 years.

Which statement is true about applying the payback method to the new project?

An epidemiologist computes a risk ratio for a disease spread on a cruise ship using the following formula: Attack rate in exposed group/Attack rate in unexposed group. The risk ratio turns out to be 2.4 and it is statistically significant at the .01 level. Which of the following is the BEST interpretation of the risk ratio?

a. The people in the exposed group were exposed to the disease prior to getting on the cruise ship

b. The risk of disease is higher in the unexposed group

c. The risk of disease is higher in the exposed group

d. There is no difference in risk between the exposed and unexposed groups

Price discrimination is a pricing strategy where different groups of consumers are charged different amounts for the same good. This is further divided into direct and indirect categories with direct price discrimination charging different prices to different groups of consumers such as adults vs children or students vs non students and indirect discrimination charging different prices based on features that consumers are willing to pay for such as a cruise ship ticket that offers interior, exterior or balcony cabins. Direct price discrimination would be more advantageous with products that are marketed to varying groups or geographic areas. Pharmaceutical companies often use direct price discrimination to charge different prices to different countries with America being the highest. They then pursue legislation to prevent Americans from importing medication from lower paying countries If a product is not marketed to a diverse group then direct price discrimination may not be the best strategy. In these situations, it is still possible that indirect price discrimination could be a good strategy. This works best for products with a variety of options or features that consumers are willing to pay for. An example of this can be seen in the selling of automobiles. The price will change based on the different features that a consumer selects.    

Please respond in 100-150 words