Question
In: Finance
Carla Vista Productions borrowed some money from the CaliforniaFinance Company at a rate of 13.80...
Carla Vista Productions borrowed some money from the California Finance Company at a rate of 13.80 percent for a seven-year period. The loan calls for a payment of $1,286,000 each year beginning today. How much did Carla Vista borrow? (Round factor values to 4 decimal places, e.g. 1.5214 and final answer to nearest whole dollar, e.g. 5,275.)
Carla Vista borrowed
Solutions
Expert Solution
Present Value Annuity Due = 
where r is the rate of Return for compounding period = 13.80%
n is the no of compounding period 7 years
= 
= $6314336.60
Amount borrowed is $6314336.60
jeff jeffy answered 2 years agoRelated Solutions
Blossom Productions borrowed some money from the California Finance Company at a rate of 15.80 percent...
Blossom Productions borrowed some money from the California
Finance Company at a rate of 15.80 percent for a seven-year period.
The loan calls for a payment of $1,692,000 each year beginning
today. How much did Blossom borrow? (Round factor values to 4
decimal places, e.g. 1.5214 and final answer to nearest whole
dollar, e.g. 5,275.)
Please explain problem in detail. Thank you.
Shown below are comparative balance sheets for Carla Vista Company. Carla Vista Company Comparative Balance Sheets...
Shown below are comparative balance sheets for Carla Vista
Company.
Carla Vista Company
Comparative Balance Sheets
December 31
Assets
2022
2021
Cash
$ 170,000
$ 55,000
Accounts receivable
220,000
190,000
Inventory
417,500
472,500
Land
200,000
250,000
Equipment
650,000
500,000
Accumulated depreciation—equipment
(165,000
)
(80,000
)
Total
$1,492,500
$1,387,500
Liabilities and Stockholders’ Equity
Accounts payable
$ 97,500
$ 107,500
Bonds payable
375,000
500,000
Common stock ($1 par)
540,000
435,000
Retained earnings
480,000
345,000
Total
$1,492,500
$1,387,500
Additional information:
1.
Net income...
Carla Vista Shoes’ comparative balance sheet is presented below. Carla Vista reports under ASPE. CARLA VISTA...
Carla Vista Shoes’ comparative balance sheet is presented below.
Carla Vista reports under ASPE.
CARLA
VISTA SHOES
Balance Sheet
December 31
Assets
2021
2020
Cash
$25,380
$15,930
Accounts receivable
21,780
20,070
Long-term investments
20,700
14,400
Equipment
54,000
63,000
Accumulated
depreciation—equipment
(12,600
)
(9,000
)
Total
$109,260
$104,400
Liabilities and Shareholders’ Equity
Accounts payable
$17,640
$9,990
Notes payable
9,000
27,000
Common shares
54,000
40,500
Retained earnings
28,620
26,910
Total
$109,260
$104,400
Additional Information:
1.
Profit was $25,470. Dividends
declared and paid...
Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista...
Carla Vista Company has a December 31 fiscal year end. Selected
information follows for Carla Vista Company for two independent
situations as at December 31, 2021:
1. Carla Vista purchased a patent from Tamarisk Inc. for
$411,000 on January 1, 2018. The patent expires on January 1, 2026.
Carla Vista has been amortizing it over its legal life. During
2021, Carla Vista determined that the patent’s economic benefits
would not last longer than six years from the date of
acquisition....
Carla Vista Company manufactures one product. On December 31, 2019, Carla Vista adopted the dollar-value LIFO...
Carla Vista Company manufactures one product. On December 31,
2019, Carla Vista adopted the dollar-value LIFO inventory method.
The inventory on that date using the dollar-value LIFO inventory
method was $960,000. Inventory data are as follows:
Year
Inventory at
year-end prices
Price index
(base year 2019)
2020
$1,285,200
1.05
2021
1,840,000
1.15
2022
1,930,000
1.25
Compute the inventory at December 31, 2020, 2021, and
2022, using the dollar-value LIFO method for each year.
Inventory at December 31, 2020
Inventory at...
This is a partial adjusted trial balance of Carla Vista Co.. CARLA VISTA CO. Adjusted Trial...
This is a partial adjusted trial balance of Carla Vista Co..
CARLA VISTA CO. Adjusted Trial Balance January 31, 2022 Debit
Credit Supplies $780 Prepaid Insurance 1,620 Salaries and Wages
Payable $1,030 Unearned Service Revenue 780 Supplies Expense 960
Insurance Expense 540 Salaries and Wages Expense 1,700 Service
Revenue 4,020 Prepare the closing entries at January 31, 2022.
Carla Vista Company manufactures equipment. Carla Vista’s products range from simple automated machinery to complex systems...
Carla Vista Company manufactures equipment. Carla Vista’s
products range from simple automated machinery to complex systems
containing numerous components. Unit selling prices range from
$235,000 to $1,620,000, and are quoted inclusive of installation.
The installation process does not involve changes to the features
of the equipment to perform to specifications. Carla Vista has the
following arrangement with Winkerbean Inc.
•
Winkerbean purchases equipment from Carla Vista on May 2, 2020,
for a price of $1,100,000 and contracts with Carla Vista...
The comparative unclassified statement of financial position for Carla Vista Ltd. follows: CARLA VISTA LTD. Statement...
The comparative unclassified statement of financial position for
Carla Vista Ltd. follows:
CARLA VISTA
LTD.
Statement of Financial Position
December 31
Assets
2018
2017
Cash
$55,000
$28,000
Accounts receivable
81,000
63,000
Inventory
183,000
203,500
Long-term investments
80,000
120,000
Equipment
285,000
156,000
Accumulated depreciation
(61,000
)
(37,000
)
Total assets
$623,000
$533,500
Liabilities and Shareholders’
Equity
Accounts payable
$32,000
$ 45,000
Bank loan payable
153,000
172,500
Common shares
219,000
176,000
Retained earnings
219,000
140,000
Total liabilities and shareholders’
equity
$623,000
$533,500...
Here are the comparative income statements of Carla Vista Corporation. CARLA VISTA CORPORATION Comparative Income Statement...
Here are the comparative income statements of Carla Vista
Corporation.
CARLA VISTA CORPORATION
Comparative Income Statement
For the Years Ended December 31
2022
2021
Net sales
$637,500
$555,200
Cost of goods sold
454,100
418,600
Gross Profit
183,400
136,600
Operating expenses
74,500
48,700
Net income
$ 108,900
$ 87,900
(a)
Prepare a horizontal analysis of the income statement data for
Carla Vista Corporation, using 2021 as a base. (If
amount and percentage are a decrease show the numbers as negative,
e.g....
On June 10, Carla Vista Company purchased $8,000 of merchandise on account from Flint Company, FOB...
On June 10, Carla Vista Company purchased $8,000 of merchandise
on account from Flint Company, FOB shipping point, terms 1/10,
n/30. Carla Vista pays the freight costs of $550 on June 11.
Damaged goods totaling $400 are returned to Flint for credit on
June 12. The fair value of these goods is $70. On June 19, Carla
Vista pays Flint Company in full, less the purchase discount. Both
companies use a perpetual inventory system.Prepare separate entries
for each transaction for...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Answer the questions below using the appropriate statistical technique. For questions involving the use of hypothesis...
- state the input and output of the traveling salesman problem. give the best lower bound on...
- please use C++ Create a class named Byte that encapsulates an array of 8 Bit objects....
- What are the differences between an introduction and the background of the research? What is a...
- Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed...
- What do you think about adult and childhood obesity? What do you really think is at the...
- When does chain of custody begin and when does it end?
ADVERTISEMENT