AIE $10\mathrm{.}1($Algo$)-$ Creating an installment loan schedule.

On January $1,$ Year $1,$ ArkWay United Company borrowed $\backslash (\backslash$$ $102,000\backslash )$ cash from a bank by issuing a $10-$year, $9$ percent note.

The principal and interest are to be paid by making annual payments in the amount of $\backslash (\backslash$$ $15,894\backslash ).$

Payments are to be made December $31$ of each year beginning December $31,$ Year $1.$

Required:

a$.$ Complete the loan summary reference table by using the PMT function to calculate annual interest payment on the loan.

b$.$ Complete the installment loan schedule using the values from your reference table in Requirement A $.$

c$.$ Answer the following questions pertaining to the amounts you calculated in each schedule:

$1.$ Did more of the cash payment in Year $1$ go to pay for interest or the loan principal?

$2.$ Did more of the cash payment in Year $10$ go to pay for interest or the loan principal?

d$.$ Enter various values in the provided loan installment schedule template to assist you in answering the following questions:

$1.$ Holding all other loan terms constant, would increasing the number of periods make the annual cash payments cheaper or more expensive?

$2.$ Holding all other loan terms constant, would increasing the interest rate make the annual cash payments cheaper or more expensive?

Navigation:

$1.$ Use the Open Excel in New Tab button to launch this question.

$2.$ When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. $\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{\backslash$multirow$[$t$]\{2\}\{*\}\{\}\}$ & & $\backslash$multicolumn$\{4\}\{|$c$|\}\{12/31/2019\}\backslash \backslash$

$\backslash$hline & & & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Amount$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{\backslash \%$ Change$\}\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{11\}\{*\}\{$Assets$\}$ & $\backslash$multirow$[$t$]\{6\}\{*\}\{$Current Assets$\}$ & Cash and cash equivalents & $\backslash$$$2,013,547$ & & $\backslash (75\mathrm{.}9\backslash \%\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Marketable securities & $\backslash$$$1,060,726$ & & $710\mathrm{.}7\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & Restricted cash & $\backslash$$$115$ & & & $\backslash \backslash$

$\backslash$hline & & Accounts receivables & $\backslash$$$78,163$ & & $\backslash (73\mathrm{.}2\backslash \%\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Funds receivable and amounts held on behalf of$..$ & $\backslash$$$3,145,457$ & & A$36\mathrm{.}5\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & Prepaids and other current assets & $\backslash$$$263,435$ & & $465\mathrm{.}2\backslash \%$ & $\backslash \backslash$

$\backslash$hline & $\backslash$multirow$[$t$]\{4\}\{*\}\{$Long$-$term Assets$\}$ & Property and equipment, net & $\backslash$$$301\mathrm{.}273$ & & $\backslash (72\mathrm{.}6\backslash \%\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Intangible assets, net & $\backslash$$$102,912$ & & A$257\mathrm{.}9\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & Goodwill & $\backslash$$$652,088$ & & A$125\mathrm{.}0\backslash \%$ & $\backslash \backslash$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{|$l$|\}\{\backslash$multirow$[$t$]\{2\}\{*\}\{$Total Other assets, noncurrent$\}\}$ & $\backslash$$$692,403$ & & $\backslash$multirow$[$t$]\{2\}\{*\}\{\backslash [$

$\backslash$mathbf$\{\backslash$Delta $526.4\backslash \%\}$

$\backslash ]\}$ & $\backslash$multirow$[$b$]\{2\}\{*\}\{425\mathrm{.}79\}\backslash \backslash$

$\backslash$hline & & & & $\backslash$$$8,310,119$ & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{8\}\{*\}\{$Liabilities$\}$ & $\backslash$multirow$[$t$]\{5\}\{*\}\{$Current Liabilities$\}$ & $\backslash$multirow$[$t$]\{5\}\{*\}\{\backslash$begin$\{$tabular$\}\{$l$\}$

Accounts payable $\backslash \backslash$

Accrued expenses and other current liabilities Funds payable and amounts payable to custom.. Unearned fees Other liabilities, current

$\backslash$end$\{$tabular$\}\}$ & $\backslash$$$151,417$ & & A$114\mathrm{.}4\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & & $\backslash$$$1,224,080$ & & $41\mathrm{.}7\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & & $\backslash$$$3,145,457$ & & $436\mathrm{.}5\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & & $\backslash$$$674\mathrm{.}788$ & & $\backslash 36\mathrm{.}0\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & & $\backslash$$$38,022$ & & & $\backslash \backslash$

$\backslash$hline & Long$-$term Liabilities & Long$-$term debt, net of current portion & $\backslash$$$50$ & & & $\backslash \backslash$

$\backslash$hline & Long$-$term liabilities & Other liabilities, noncurrent & $\backslash$$$652,538$ & $\backslash$multirow$[$b$]\{2\}\{*\}\{\backslash$$$5\mathrm{.}886,302\}$ & $\backslash$multirow$[$t$]\{2\}\{*\}\{$A$300\mathrm{.}6\backslash \%\}$ & $\backslash \backslash$

$\backslash$hline & Total & $\backslash$multirow$[$t$]\{4\}\{*\}\{$Common stock Retained earnings Other equity$\}$ & & & & $451\mathrm{.}09\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{3\}\{*\}\{$Equity$\}$ & $\backslash$multirow$[$t$]\{2\}\{*\}\{$Stockholders$\text{'}$ Equity$\}$ & & & & A$10\mathrm{.}3\backslash \%$ & $\backslash \backslash$

$\backslash$hline & & & $\backslash [$

$(\backslash$$ $1,420,991)$

$\backslash ]$ & & $74\mathrm{.}8\backslash \%$ & $\backslash \backslash$

$\backslash$hline & Total & & & $\backslash$$$2,423,817$ & & $\backslash 10\mathrm{.}79\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Shown in thousands. $|$ Data Source: $10-$Kreport filings.

Required:

$1.$ As of December $31,2021,$ what percent of assets will be used or converted into cash within the next year?

$2.$ As of December $31,2021,$ what how many liabilities are due to be paid within the next year?

$3.$ As of December $31,2021,$ what is Airbnb's current ratio?

$4.$ Is Airbnb a profitable company?

$5.$ Based on the $2021$ current ratio, do you expect Airbnb will have a liquidity problem within the next year?

$6.$ As of December $31,2021,$ what was Airbnb"s debt$-$to$-$assets ratio?

$7.$ Based on $2021$ debt$-$to$-$assets ratio, is Airbnb insolvent?

$8.$ Based on $2021$ data, would you say that Airbnb has a healthy balance sheet?

$9.$ Given Airbnb's lack of ability to generate income, how are they able to stay in business?

$10.$ Airbnb's current asset Funds recelvable and amounts held on behalf of customers has the same balance as the current liability Funds payable and amounts payable to customers. Is this an error or is there a good explanation? Income Statement for Airbnb

Legend: Revenue $|$ Net Income $($Loss$)$ Statement of Cash Flow for Airbnb

Select a Financial Statemen

Statement of Cash Flow

Legend: Cash from Operations $|$ Cash from Investing $|$ Cash from Financing