Inspiron Inc Income Statement For the year ended June 30, 2022 2022 ('000s) Sales 675,500 Cost of Goods Sold (175,000) Gross Profi 500,500 Selling, Marketing & Admin. Costs (32,000) Depreciation Expense (17,500) Earnings before Interest & Taxes 451,000 Interest Expense (4,250) Taxable Income 446, 750 Taxation (30%) (134, 025) Net Income 312,725 Dividends (40%) 125,090 Addition to Retained Eamings 187,635 Inspiron Inc Statement of Financial Position As at June 30, 2021 & 2022 2021 2022 2021 2022 (000s) (OOOs) (000s) (000s) ASSETS LIABILITIES & EQUITY Current Assets Current Liabilities Inventories 220,000 220,000 Accounts Payables 100,000 110,636 Accounts Receivables 225,000 280,000 Notes Payables 140,750 100,545 Cash & Equivalents 195,750 244,316 240,750 211,181 640,750 744,316 Non-current Liabilitys 100,000 85,000 Non Current Assets, Net 525,500 575,000 Total Liabilities 340,750 296,181 Equity Common Stock 220,000 230,000 Retained Earnings 605,500 793,135 Total Equity 825,500 1,023,135 TOTAL ASSETS 1,166,250 1,319,316 TOTAL LIAB. & EQUITY 1, 166,250 1,319,316Question 4 25 Marks In addition to the projects evaluated above, Inspiron Inc. is considering several other savings and financing options in an effort to expand operations and improve overall efficiency of operations, while fully investing idle cash. PART A 6 Marks Based on Statement of Financial Position as at June 30, 2022, the company had $244,316,000 in Cash & Equivalents. Of this, $40,000,000 is in a fixed deposit that is due to mature on January 2, 2023. The company is considering the following investment options for these funds: Investment A Annual Interest Rate of 6.5%, compounded semi-annually Investment B Annual Interest Rate of 6.25%, compounded monthly Investment C Annual Interest Rate of 6.55%, compounded annually Required: Advise the company on the best investment option for the maturing funds. (6 Marks)PART B 9 Marks The company is considering purchasing a new delivery truck for $2,500,000. The intention is to obtain a 4-year loan from their bank, at an interest rate of 9% per annum. Annual payments are expected to be made on the loan. Required: (a) Calculate Inspiron Inc.'s annual payment on this loan. (5 Marks) (b) Prepare the 4-year Amortization Schedule for this loan. (4 Marks) PART C 10 Marks As part of being a responsible corporate citizen, Inspiron Inc. wants to establish a college fund to assist under-privileged students in pursuing their 4-year under-graduate degree programmes. The tuition fee is estimated to be $75,000 for the first year but is expected to grow/increase by 4% per year thereafter. Required: (a) Assuming this college fund will earn 8% interest per annum, calculate the amount required at the start of a student's college journey to fund his/her full tuition. (5 Marks) (b) If Inspiron would like to sponsor the first student in two years' time and they currently have $215,000 earmarked for investment, what annual rate of interest is required to accumulate the amount needed as calculated in part (a)