A. Explain why a retail company might have accounts receivable AND notes receivable on their balance sheet. B. Your company has a $300,000, 5-year, 8% note receivable which requires annual payments of principal and interest on October 1 each year. 1. How much are the annual payments? Show your calculations 2. How much of the $300,000 should be considered a current asset on December 31 of this year? Show your calculations. 3. How much will this note impact Income Before Taxes NEXT year? Show your calculations. C. Your company has a current ratio of $420,000 / $200,000 = 2.10. Show how each of the following INDEPENDENT events would impact the current ratio. Ignore any tax impact and show your calculations. 1. Collected $30,000 of accounts receivable The new current ratio would be $420.000 + or - $ $200,000+ or - $ 2. Purchased $50,000 of merchandise on account. The new current ratio would be $420.000 + or - $ $200,000+ or - $ 3. Estimated bad debts to be $18,000 for the year The new current ratio would be $420.000 + or - $ $200,000 + or - $ 4. Sold $27,000 of merchandise for $60,000 on account The new current ratio would be $420.000 + or - 5 $200,000+ or - $