Table PV-1 PRESENT VALUE OF 1 (n) periods 2% 27% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 0.98039 0.97561 0.97087 0.96156 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 2. 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 3 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 4 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 5 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 6 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 7 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 8 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 9 0.83676 0.80073 0.76642 0.70259 0.64461 0.46043 0.42410 0.39092 0.36061 0.28426 0.59190 0.54393 0.50025 0.55839 0.50835 0.50835 0.46319 10 0.82035 0.78120 0.74409 0.67556 0.61391 0.42241 0.38554 0.35218 0.32197 0.24719 11 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 12 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.35554 0.31863 0.28584 0.25668 0.18691 13 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 14 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 15 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 16 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.10687 17 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19785 0.16963 0.14564 0.09293 18 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.08081 19 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 20 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.06110 Table PV-2 PRESENT VALUE OF AN ANNUITY OF 1 1 PV = 1 - (1 (n) periods 2% 27% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 2 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 5 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 6 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 7 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 8 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 9 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 13 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 14 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7.78618 7.36669 6.98187 6.62817 5.72448 15 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 16 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 17 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 18 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 19 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 20 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 9.12856 8.51356 7.96333 7.46944 6.25933 Novak Corp. had the following long-term receivable account balances at December 31, 2016. Notes receivable - Sale of division $1,787,700 Notes receivable - Employees 382,000 Transactions during 2017 and other information relating to Novak's long-term receivables were as follows: 1. The $1,787,700 note receivable is dated May 1, 2016, bears interest at 8%, and represents the balance of the consideration received from the sale of Novak's electronics division to Wildhorse Company. Principal payments of $595,900 plus appropriate interest are due on May 1, 2017, 2018, and 2019. The first principal and interest payment was made on May 1, 2017. Collection of the note instalments is reasonably assured. 2. The $382,000 note receivable is dated December 31, 2016, bears interest at 7%, and is due on December 31, 2019. The note is due from Marcia Cumby, president of Novak Corp., and is secured by 11,600 Novak's common shares. Interest is payable annually on December 31, and the interest payment was made on December 31, 2017. The quoted market price of Novak's common shares was $50 per share on December 31, 2017. 3. On April 1, 2017, Novak's sold a patent to Sandhill Company in exchange for a $190,000 non-interest-bearing note due on April 1, 2019. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2017, was 11%. The present value of $1 for two periods at 11% is 0.81162 (use this factor). The patent had a carrying amount of $41,100 at January 1, 2017, and the amortization for the year ended December 31, 2017 would have been $7,400. The collection of the note receivable from Sandhill is reasonably assured. 4. On July 1, 2017, Novak's sold a parcel of land to Windsor Inc. for $180,000 under an instalment sale contract. Windsor made a $55,500 cash down payment on July 1, 2017, and signed a four-year, 12% note for the $124,500 balance. The equal annual payments of principal and interest on the note will be $40,990, payable on July 1, 2018, through July 1, 2021. The land could have been sold at an established cash price of $200,000. The cost of the land to Novak's was $157,500. Collection of the instalments on the note is reasonably assured. 5. On August 1, 2017, Novak's agreed to allow its customer, Saini Inc., to substitute a six-month note for accounts receivable of $200,000 it owed. The note bears interest at 6% and principal and interest are due on the maturity date of the note. Click here to view the factor table present value of 1 Click here to view the factor table present value of an annuity of 1 The tables in this problem are to be used as a reference for this problem. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Cash inflows from notes 2017 2018 2019 2020 2021 8% Note receivable Principal $ $ $ Interest 7% Note receivable Principal Interest Non-interest-bearing note receivable Payment Instalment contract receivable Down payment Payment 6% Note receivable Principal Interest Total LINK TO TEXT LINK TO TEXT LINK TO TEXT Determine the amount of interest income that should be reported in 2017. (Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 8,971.) 8% Note Receivable (Sale of Division) $ 7% Note Receivable (Employees) $ Non-interest bearing note (Patent) $ Instalment contract (Sale of Land) $ 6% Note Receivable (Saini) $ Total Interest Income reported in 2017 Determine the portion of the note and any interest that should be reported in current assets at December 31, 2017. (Round answers to 0 decimal places, e.g. 9,871.) 8% Note Receivable (Sale of Division) 7% Note Receivable (Employees) ta Non-interest bearing note (Patent) to Instalment contract (Sale of Land) $ 6% Note Receivable (Saini) $ Total current notes and interest $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Determine the portion of the note that should be reported as a long-term investment at December 31, 2017. (Round answers to O decimal places, e.g. 8,971.) 8% Note Receivable (Sale of Division) 7% Note Receivable (Employees) to Non-interest bearing note (Patent) $ $ Instalment contract (Sale of Land) 6% Note Receivable (Saini) Total long-term investment Prepare the long-term receivables section of Novak's statement of financial position at December 31, 2017. (Round answers to o decimal places, c.g. 8,971.) Novak Corp. Long-Term Receivables Section of Statement Financial Position v LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Novak's statement of financial position at December 31, 2017. (Round answers to o decimal places, e.g. 8,971.) Novak Corp. Selected Statement of Financial Position Current portion of long-term receivables: Accrued interest receivable: LINK TO TEXT LINK TO TEXT LINK TO TEXT Determine the tatal interest income from the long-term receivables that would appear Novak's income statement for the year ended December 31, 2017. (Round answer to O decimal places, e.g. 8,971.) Total interest income for year ended 12/31/17