Use a PV table rounded to 5 decimal places.

USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (9) QUESTIONSOn January 2, 2014, Sparky Company performed consultation services for Wildcat Corporation and agreed to allow Wildcat to pay over time. Sparky is considering several different note options below. Wildcat's normal borrowing rate is 8%. For each option listed below, determine Service Revenue Sparky can record at Jan. 2, 2014, Interest Revenue to be recorded at December 31, 2015, and the Carrying Value of the Note Receivable on their Balance Sheet at December 31, 2015 (after interest has been accrued.) *Use the PV tables in your CH 6 class notes. Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not use commas or s sign. (Sorry blackboard is very sensitive and will mark your answer incorrect due to rounding and punctuation Service Interest Revenue Revenue Scenarios: Value a Value at at at 1/2/2014 12/31/201512/31/2015 (1) Sparky will require Wildcat to make an initial cash down payment of $30,000onJ. 2, 2014 (this is NOT a PVAD...simply a cash down payment so that Wildcat will not finance 100% of the services. The remainder will De financed in the orm of a S250,00 SA, noted e December 31, 2017. Interest will be remitted each June 30 & Dec. 31, with principal due at maturity. (2) Sparky will provide the service in exchange for a non-interest-bearing note with a face value of $285,000. Terms of the note require Principal & Interest (P&I) payments be made each June 30 & Dec 31 for the next 4 years. s Blank , SB ank2 S Blank $ Blank 4 $Blank5 Blank 6 (3) Sparky will provide the service in exchange for a four-year, $252,140, 8% note with P&I payments made each Jun 30 & Dec 31, The first payment will be received on Jun 30th. | $Blank 7 | $. Blank 8 Blank 9 $ [Blank 1] a. From Scenario (1) above, determine how much Service Revenue Sparky can record on January 2, 2014: Selected Answer: 280000 Response The Service Revenue to be recorded on Jan 2 must be equal to the "Cash Equivalent Value" of what Sparky would accept had this sale been a "Cash" sale. Feedback: Therefore, the Service Revenue must include the cash down payment PLUS the PV of the two cash flows (i.e. PV of Interest Payments+ PV of Principal due at USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (9) QUESTIONSOn January 2, 2014, Sparky Company performed consultation services for Wildcat Corporation and agreed to allow Wildcat to pay over time. Sparky is considering several different note options below. Wildcat's normal borrowing rate is 8%. For each option listed below, determine Service Revenue Sparky can record at Jan. 2, 2014, Interest Revenue to be recorded at December 31, 2015, and the Carrying Value of the Note Receivable on their Balance Sheet at December 31, 2015 (after interest has been accrued.) *Use the PV tables in your CH 6 class notes. Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not use commas or s sign. (Sorry blackboard is very sensitive and will mark your answer incorrect due to rounding and punctuation Service Interest Revenue Revenue Scenarios: Value a Value at at at 1/2/2014 12/31/201512/31/2015 (1) Sparky will require Wildcat to make an initial cash down payment of $30,000onJ. 2, 2014 (this is NOT a PVAD...simply a cash down payment so that Wildcat will not finance 100% of the services. The remainder will De financed in the orm of a S250,00 SA, noted e December 31, 2017. Interest will be remitted each June 30 & Dec. 31, with principal due at maturity. (2) Sparky will provide the service in exchange for a non-interest-bearing note with a face value of $285,000. Terms of the note require Principal & Interest (P&I) payments be made each June 30 & Dec 31 for the next 4 years. s Blank , SB ank2 S Blank $ Blank 4 $Blank5 Blank 6 (3) Sparky will provide the service in exchange for a four-year, $252,140, 8% note with P&I payments made each Jun 30 & Dec 31, The first payment will be received on Jun 30th. | $Blank 7 | $. Blank 8 Blank 9 $ [Blank 1] a. From Scenario (1) above, determine how much Service Revenue Sparky can record on January 2, 2014: Selected Answer: 280000 Response The Service Revenue to be recorded on Jan 2 must be equal to the "Cash Equivalent Value" of what Sparky would accept had this sale been a "Cash" sale. Feedback: Therefore, the Service Revenue must include the cash down payment PLUS the PV of the two cash flows (i.e. PV of Interest Payments+ PV of Principal due at