Entries for Installment Note Transactions

On January 1, Year 1, Bryson Company obtained a $55,000, four-year, 11% installment note from Campbell Bank. The note requires annual payments of $17,728, beginning on December 31, Year 1.

a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4.

Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out.

b. Journalize the entries for the issuance of the note and the four annual note payments.

Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits.

c. How will the annual note payment be reported in the Year 1 income statement?
of $ would be reported on the income statement.

Entries for Installment Note Transactions

On January 1, Year 1, Bryson Company obtained a $33,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $9,963, beginning on December 31, Year 1.

a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4.

Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out.

b. Journalize the entries for the issuance of the note and the four annual note payments.

Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payableup or down to ensure that debits equal credits.

c. How will the annual note payment be reported in the Year 1 income statement?
of $ would be reported on the income statement.

1) 1 year(s) ago, Youssef had 123,900 dollars in his account. In 4 year(s), he expects to have 299,100 dollars. If he has earned and expects to earn the same return each year from 1 year(s) ago to 4 year(s) from today, then how much does he expect to have in 1 year(s) from today?

2) 2 year(s) ago, Fatima invested 5,690 dollars. In 1 year(s) from today, she expects to have 7,930 dollars. If Fatima expects to earn the same annual return after 1 year(s) from today as the annual rate implied from the past and expected values given in the problem, then in how many years from today does she expect to have exactly 11,710 dollars? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).

You are the director of a company and you are considering updating all of your computers to new models. Using the old computers you have net cash flows of $86,170 per year and it is estimated that with the new computers net cash flows would grow to $112,021 per year. Updating all of the computers would initially cost $89,617. The estimated remaining life of the old computers is 2 years and the expected lifetime of the new computers is 4 years. The scrap value of the old computers is estimated to be $15,511 irrespective of whether they are scrapped today or in 2 years. The new computers have an estimated scrap value at the end of their life of $17,062.

Management is considering two different options:

Option 1: Use the old computers for 2 more years and then replace them with the new computers that will then be replaced every 4 years in perpetuity.

Option 2: Replace the old computers with the new computers now and replace them every 4 years in perpetuity.

The company's required rate of return is 10.8% pa. Assume that the cost of the computers, the cash flows that they generate and their scrap value remain constant over time. a)What is the net present value of option 1? Give your answer in dollars to the nearest dollar. NPV = $

b)What is the net present value of option 2? Give your answer in dollars to the nearest dollar. NPV = $

c)Which option will you undertake?

Option 1: Use the old computers for 2 more years and then replace them with the new computers that will then be replaced every 4 years in perpetuity.

Option 2: Replace the old computers with the new computers now and replace them every 4 years in perpetuity.

Write a Java program to play the game Tic-Tac-Toe. Start off with a human playing a human, so each player makes their own moves.

Follow the design below, creating the methods indicated and invoking them in the main program.

Use a char array of size 9 as the board; initialize with the characters 0 to 8 so that it starts out looking something like the board on the left.

Make sure the board lines up properly so that the entries and borders all line up properly. DO NOT print a board that looks like or is similar to the output below where columns are misaligned.

0| O|2

3|X | 5

6 | X|O

You will need a variable to keep track of whose turn it is. Use a char variable named turn and initialize to X when the game starts. After a move, if there is no winner and no draw, switch to the O and continue to take turns as the game progresses. Declare additional variables as you build your program.

1. After the variable declarations, begin a while loop which will keep the game going the user indicates to stop the game. (see a. below)
   1. When a new games starts, allow the user to terminate the program by entering an S or s (remember String has toLowerCase and toUpperCase methods). Any other entry will start a new game.
2. If you are starting a new game, invoke a method to initialize the board and turn and another method to print the board
3. Start an inner while loop that runs as long as the game isn’t over (a win or draw will terminate the game but not the program).
4. Invoke a method to allow the user to make a move
   1. If there is no empty spot, (the game is a draw), print a message and ask the user whether to start a new game or terminate the program
   2. If the value entered is invalid (not 0 to 8), print a message and allow the user to re-enter a move
   3. If the user enters a value but it’s already taken, print a message and allow the user to retry
   4. If the user enters a value and it’s available, set the spot to X or O (depending upon the value of turn) and print the board
5. After a valid move is made, invoke a method to check if the last one to make a move won the game
   • Winner - print the winner and start a new game
   • No winner - switch turn and ask for the next position

SAMPLE OUTPUT – NOTE OUTPUT BOLDED TO SHOW HANDLING OF BAD ENTRIES

How many times is line (5) executed in the following pseudocode? Enter your answer in the box below.

NOTE: Please read the pseudocode very carefully.

(1) n=14n=14

(2) m=16m=16

(3) for i=1i=1 to n+2n+2

(4) ---- for j=1j=1 to mm

(5) -------- print (i,j)

Capital Rationing Decision for a Service Company Involving Four Proposals

Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows:

The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of returnof 12% is required on all projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals.

Required:

1. Compute the cash payback period for each of the four proposals.

2. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the average rate of return for each of the four proposals. If required, round your answers to one decimal place.

3. Using the following format, summarize the results of your computations in parts (1) and (2) by placing the calculated amounts in the first two columns on the left and indicate which proposals should be accepted for further analysis and which should be rejected. If required, round your answers to one decimal place.

4. For the proposals accepted for further analysis in part (3), compute the net present value. Use a rate of 15% and the present value of $1 table above. Round to the nearest dollar.

5. Compute the present value index for each of the proposals in part (4). If required, round your answers to two decimal places.

Capital Rationing Decision for a Service Company Involving Four Proposals

Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows:

The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of return of 12% is required on all projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals.

Required:

1. Compute the cash payback period for each of the four proposals.

2. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the average rate of return for each of the four proposals. If required, round your answers to one decimal place.

3. Using the following format, summarize the results of your computations in parts (1) and (2) by placing the calculated amounts in the first two columns on the left and indicate which proposals should be accepted for further analysis and which should be rejected. If required, round your answers to one decimal place.

4. For the proposals accepted for further analysis in part (3), compute the net present value. Use a rate of 15% and the present value of $1 table above. Round to the nearest dollar.

5. Compute the present value index for each of the proposals in part (4). If required, round your answers to two decimal places.

1. [10 marks] (TestSumSeries.java) Write a recursive method that sums up the following series:

s(i) = 21+ 24+47+410+…+ i+23i+1+i+13i+1

i = 0, 1, 2, 3, …

When i is even, the term is i+23i+1

When i is odd, the term is i+13i+1

In the main method, display the s(i) for i = 0, 1, 2, 3, 4, 5

A machine costing $209,000 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 122,500 in Year 1, 124,300 in Year 2, 121,600 in Year 3, 121,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.)

Required:

Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation.

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation.

b/

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production.

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance.