P$9-3($Static$)$ Computing Equal Periodic Debt Payments, and Completing a Schedule L$09-2$

Alimentex Inc. develops, manufactures, and markets a wide range of fruit and vegetable juices and drinks as well as specialty food

products, such as fondue broths and sauces, soups, gravies, pestos, and sauces for pasta and pizza. Use Table $8$C$\mathrm{.}1,$ Table $8$C$\mathrm{.}2.$

$($Round time value factor to $4$ decimal places.$)$

The company's long$-$term debt includes the following obligations:

Long$-$Term Debt

Obligation related to the acquisition of equipment, $5\mathrm{.}5\%,$ payable starting in

December $2020$ in eight equal annual blended instalments of $$262,212$ through

Obligation under a lease for distribution equipment, $9\mathrm{.}7\%,$ payable starting in

December $2021$ in $11$ equal semi$-$annual blended instalments of $$44,998,$ through

December $2026.$

As of Dec. As of Dec.

$31,2022,31,2021($In thousands of dollars$)$

$$1,120,$$$1,310$

$293$

$350$

Required:

Assume that the equipment related to the first obligation was acquired on January $1,2020$ and that the first payment of $$262,212$

was made on December $31,2020.$ Verify that the carrying amount reported by the company as of December $31,2022$ represents the

present value of the remaining annual payments. $($Note: Tables $8C\mathrm{.}1$ and $8C\mathrm{.}2$ do not include the $5\mathrm{.}5$ percent interest rate. Use

Microsoft Excel or a calculator to compute the present value of future payments.$)($Enter your answer in dollars not in thousands of

dollars rounded to the nearest whole dollar.$)$

Carrying amount

How much interest will the company pay as part of the five remaining instalments on the $5\mathrm{.}5$ percent obligation? $($Hint$.$ You may find

it helpful to prepare a schedule similar to Exhibit $9\mathrm{.}3,$ option $3.)($Enter your answer in dollars not in thousands of dollars rounded to

the nearest whole dollar.$)$