On January 1, 2021, Your Co. signed a 10-year noncancelable…
On January 1, 2021, Your Co. signed a 10-year noncancelable lease for machinery. Present Value of Lease Payments $1,878,822 Lease payments made at the beginning of lease year $280,000 Lease Term 10 year Implicit interest Rate 8% Present value of an annuity due (10,8%) 7.24689 The lease is determined to be a finance lease. Your Co. should record amortization expense each year for
Read DetailsSubzero Warehouse, Inc. leased equipment from Northern Finan…
Subzero Warehouse, Inc. leased equipment from Northern Finance on January 1, 2021 with a fair value of $450,000. The lease term is 4 years and requires equal rental payments at the beginning of each year. The equipment has an estimated useful life of 5 years, and a $50,000 guaranteed residual value. Northern Finance uses an interest rate of 4% to determine lease payments. The table below provides select present value factors. Present Value of a Single Sum (4%,4 0.85480 Present Value of an Annuity Due (4%,4) 3.77509 Present Value of an Ordinary Annuity (4%,4) 3.62990 Present Value of a Single Sum (4%,5) 0.82193 Present Value of an Annuity Due (4%,5) 4.62990 Present Value of an Ordinary Annuity (4%,5) 4.45182 How much are the lease payments Northern Finance will require?
Read DetailsBocas del Toro, Inc. reported net income of $59,000 for the…
Bocas del Toro, Inc. reported net income of $59,000 for the year ended December 31, 2021. Included in net income were depreciation expense of $8,900 and a gain on sale of equipment of $2,100. Each of the following accounts increased during 2021 by these amounts: Accounts receivable $2,700 Inventory $4,900 Prepaid rent $7,300 Available-for-sale-securities $900 Accounts Payable $5,000 What is the amount of cash provided by operating activities for Bocas del Toro for the year ended December 31, 2021?
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