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 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 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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