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Attached is few pages of my accounting homework that i can not seem to figure out. i have filled in a few of them and
Attached is few pages of my accounting homework that i can not seem to figure out. i have filled in a few of them and i am needing you to tell me what i am doing wrong. please help.
Student Name: Class: Problem 06-05 CLAUSSEN PURCHASE Estimated Cash Flows Years 1-5 Years 6-10 Years 11-20 End of Year 20 Yearly Cash Flow $70,000 70,000 70,000 400,000 Time Period 5 5 5 10 5 5 10 Interest Rate 8% 10% 10% 12% 12% 12% 12% *Factor 1.46933 1.61051 1.61051 3.10585 1.76234 1.76234 3.10585 Maximum Purchase Price * Use the Present and Future Value Tables in Appendix 6 or enter the proper formula rounded to 5 decimal places PVA $8,228 11,274 26,089 PV Given Data P06-05: CLAUSSEN PURCHASE Anticipated cash flows per year for 20 years Selling price in 20 years Desired rate of return: Years 1-5 Years 6-10 Years 11-20 $70,000 $400,000 8% 10% 12% Student Name: Class: Problem 06-07 THE LOWLIFE COMPANY Calculations Part 1 Part 2 Part 3 Part 4 Time PVA Period $250,000 4 $250,000 5 $250,000 $250,000 3 Interest Rate 10% 8% 10% Annuity *Factor 3.16987 3.99271 3.79079 2.62432 Annuity Amount Calculation $316,987 Payment $399,271 Payment $51,351 5 Payments $104,087 7% Interest * Use the Present and Future Value Tables in Appendix 6 or enter the proper formula rounded to 5 decimal places Given Data P06-07: THE LOWLIFE COMPANY Amount of loan Part 1: Interest rate Number of payments Part 2: Interest rate Number of payments Part 3: Interest rate Annual payment amount Part 4: Number of payments Annual payment amount $250,000 10% 4 8% 5 10% $51,351 3 $104,087 Student Name: Class: Problem 06-14 HORIZON DISTRIBUTING COMPANY Pension Obligations as of December 31, 2006 Requirement 1: Employee Tinkers Evers Chance Date of Annual First Payment Payment $20,000 12/31/2009 $25,000 12/31/2010 $30,000 12/31/2011 Time Periods 17 2 18 3 19 4 Interest Rate 11% 11% 11% *Deferred Annuity Factor PV of Pension Obligations * Use the Present and Future Value Tables in Appendix 6 or enter the proper formula rounded to 5 decimal places Pension Obligations as of December 31, 2006 Requirement 2: PV as of Employee 12/31/2003 Tinkers Evers Chance Total present value Amount of annual contribution: Time Period 3 3 3 3 Interest Rate 11% 11% 11% 11% * Use the Present and Future Value Tables in Appendix 6 or enter the proper formula rounded to 5 decimal places *FV FV Annuity as of Factor 12/31/2006 2.44371 2.44371 2.44371 2.44371 Given Data P06-14: HORIZON DISTRIBUTING COMPANY Life expectancy beyond retirement Interest rate Number of equal contributions Employee Tinkers Evers Chance Annual Payment $20,000 $25,000 $30,000 15 11% 3 Date of First Payment 12/31/2012 12/31/2013 12/31/2014Step by Step Solution
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