Pharoah
Industries |
Balancesheet |
31 December 2017 |
|
Property/Plant/Equipment |
|
Current Liabilities |
|
Lease Under Capital Lease |
$3,127,997 |
Interest Payable |
$215,709 |
Lease Accumulated Depreciation |
$312,799.70 |
Lease Liability |
$215,924 |
( $31279971/10 Year) |
$2,815,197.30 |
|
|
|
|
Long Term Liabilities |
|
|
|
Lease Liabilities |
$2,480,440 |
|
|
|
|
Working Note-1 :
Computation of Present Value of Lease Payment |
Detail |
Amount |
Time |
PVF @8% |
Present Value |
Annual Lease Rental |
$431,633 |
1-10 |
7.24689 |
$3,127,997 |
|
|
|
|
|
Total Present Value ( Rounded
by $1) |
$3,127,997 |
Working Note-2
Computation of Dealer Profit |
Detail |
Amount |
Sales ( present Value of Lease
Payment) |
$3,127,997 |
Less: Cost of Engine
Devlopment |
$2,693,000 |
Profit on Sales |
$434,997 |
Working Note-3:
Amortisation Schedule |
Date |
Annual Lease Receipt/Payment |
Interest on Receivable/Liability at
8% |
Reduction in Receivable/Liability |
Lease Receivable /Liability |
01/01/2017 |
|
|
|
$3,127,997 |
01/01/2017 |
$431,633 |
|
$431,633 |
$2,696,364 |
01/01/2018 |
$431,633 |
$215,709 |
$215,924 |
$2,480,440 |
01/01/2019 |
$431,633 |
$198,435 |
$233,198 |
$2,247,242 |
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