The Balance Sheets of Indirect Incorporated, along with other information, is provided below:
Indirect Incorporated Balance Sheet 12/31/18 12/31/19 ASSETS Cash 160,000 341,000 Accounts Receivable 300,000 320,000 Less: Allowance for Doubtful Accounts (20,000) (26,000) Inventory 400,000 375,000 Land [1] 500,000 250,000 Plant & Equipment [2] 800,000 1,200,000 Less: Accumulated Depreciation [3] (280,000) (380,000) TOTAL ASSETS 1,860,000 2,080,000 LIABILITIES Accounts Payable 100,000 120,000 Bonds Payable [4] 550,000 800,000 TOTAL LIABILITIES 650,000 920,000 SHAREHOLDERS' EQUITY Common Stock [5] 860,000 660,000 Retained Earnings [6] 350,000 500,000 TOTAL LIABILITIES & EQUITY 1,860,000 2,080,000 [1] Land that originally cost $ 250,000 was sold for $ 380,000 of cash. [2]_Equipment with a cost of $ 600,000 was purchased for cash during the year. $ 65,000 was received from the sale of equipment during the year. The original cost of the equipment sold was $ 200,000 [3]_Total depreciation for the year was $ 260,000. Of this amount, $ 220,000 was related to production equipment and recorded in an inventory account. The remainder was expensed. [4] Bonds were issued for $ 250,000 of cash during the year [5]$ 200,000 of Common Stock was repurchased during the year. [6] Net Income for the year was $ 300,000. This amount includes a $ 130,000 Gain on Sale of Land" and a $ 25,000 "Gain on Sale of Equipment". [7] Included in Net Income is a reduction of $ 32,000 for "Bad Debt Expense"Formulas and Tables Present Value of 1: PVF m,i = 1 / (1 + in Present Value of 1 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 14.0% 16.0% 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8772 0.8621 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7695 0.7432 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6750 0.6407 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.5921 0.5523 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5194 0.4761 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4556 0.4104 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.3996 0.3538 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3506 0.3050 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3075 0.2630 10 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2697 0.2267 Present Value of an Ordinary Annuity of 1: PVA ni = i( 1 +i )" Present Value of an Ordinary Annuity of 1 - No Growth 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 14.0% 16.0% 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8772 0.8621 CO OO V O UI A W N 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6467 1.6052 2.6730 2.6243 2.5771 2.5313 2.4869 2.4437 2.4018 2.3216 2.2459 3.4651 3.3872 3.3121 3.2397 3.1699 3. 1024 3.0373 2.9137 2.7982 4.2124 4. 1002 3.9927 3.8897 3.7908 3.6959 3.6048 3.4331 3.2743 4.9173 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.8887 3.6847 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.2883 4.0386 6.2098 5.9713 5.7466 5.5348 5.3349 5. 1461 4.9676 4.6389 4.3436 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 4.9464 4.6065 10 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 5.2161 4.8332
