Problem 1

To help with cash flow, Scotts Camping World (SCW) borrowed $50,000 from their bank on January 1, 2023, by issuing a 5-year, 9% installment loan. Payments of $12,854 are due each year on December 31, beginning in 2023.

(2 points) Question 1 - What is the principal balance on this installment note at the end of 2025 after the loan payment is recorded? Round your answers to the nearest whole dollar. (Hint: Use an amortization schedule to determine your answer.)

Problem 2

Refer back to Problem #1. In addition to the installment loan, SCW issued $200,000 of 5-year, 7% bonds for $190,000 on January 1, 2023. Interest is paid semiannually on June 30 and December 31. SCW uses the straight-line method for amortizing bond discounts and premiums. SCW also had the following financial information during the life of the loan: earned cash revenue of $75,000 each year, paid cash operating expenses of $30,000 each year, purchased land in 2023 for $30,000, and purchased computer equipment in 2025 for $6,500 (estimated useful life of 5 years and salvage value of $600).

(3 points ) Question 2 What is SCWs net income for 2025?

(3 points) Question 3 What is SCWs total assets for 2025?