Juniper Bush Farm has a December 31 fiscal year end. The company has six notes payable
outstanding on December 31, 2014, as follows:
i. A nine-month, 5%, $25,000 note payable issued on July 1, 2014. Interest is payable
monthly on the first day of each month starting on August 1.
ii. A six-month, 4%, $10,000 note payable issued on September 1, 2014. Interest and
principal are payable at maturity.
iii. A seven-month, 4.5%, $40,000 note payable issued on November 1, 2014. Interest and
principal are payable at maturity.
Answer:
Please find the complete solution in the attached file.
Explanation:
Answer:
The amount of dividends paid to common stockholders in 2016 is $4000
Explanation:
The cumulative preferred shares are the shares that accumulate dividends in case the dividends on these shares are not paid or paid partially in a year. The accumulated dividends will need to be paid first whenever the company declares dividends.
The amounts of dividends on preferred share for one year is,
Dividends - Preferred shares = 20 * 0.05 * 1500 = $1500
Thus, the accumulated dividends on these preferred shares at start of 2016 is,
Accumulated dividends - Preferred shares = 1500 * 3 = $4500
The common shares holders are paid after the preferred share holders have been paid. This means that we will deduct the amount of accumulated dividends on preferred shares and the dividends for this year on preferred shares from the total dividends to calculate the amount to be paid to common share holders as dividends.
Common stock dividends = 10000 - (4500 + 1500) = $4000
Answer:
-$8,705
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $110,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 4 years at 12%
= $30,000 × 3.0373
= $91,119
Refer to the PVIFA table
And, the salvage value would be
= Salvage value × pvif for 4 years at 12%
= $16,000 × 0.636
= $10,176
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Now put these values to the above formula
So, the value would equal to
= $91,119 + $10,176 - $110,000
= -$8,705
<span>If lisa decides to comparison shop now after many years of holding the mortgage along with its insurance, the new insurance quotes should be based on a coverage amount only on the outstanding mortgage balance as the principal balance will have reduced significantly since the original mortgage inception date.</span>