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1. Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of
1. Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed).Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. Compute the prinicple due in year 1. 2. Use the following information from Denmark Company's financial statements to determine operating net cash flows (indirect method). Net Income: $145,000 Depreciation expense: $16,500 Loss on sale of land $5,000 Decrease in accounts receivable: $1,500 Decrease in accounts payable: $1,250
Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar.
Compute the prinicple due in year 1.
2. Use the following information from Denmark Company's financial statements to determine operating net cash flows (indirect method).
Net Income: $145,000
Depreciation expense: $16,500
Loss on sale of land $5,000
Decrease in accounts receivable: $1,500
Decrease in accounts payable: $1,250
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