Use the following information for question 1. At the end of 2018, the Laker Company has $40,000
Question:
Use the following information for question 1. At the end of 2018, the Laker Company has $40,000 in accumulated depreciation and $100,000 in retained earnings.
2019 2020
Sales $250,000 $300,000
Notes Payable 20,000 50,000
Tax Rate 40% 40%
Gross Fixed Assets $500,000 $590,000
Total Current Liabilities 100,000 110,000
Interest Expense 30,000 35,000
Cash 20,000 30,000
Accounts Payable 30,000 20,000
COGS 30% of Sales 30% of Sales
Total Current Assets 100,000 150,000
Total Debt 200,000 240,000
Net Income 42,000 48,000
Accounts Receivable 30,000 20,000
Addition to Retained 20,000 26,000
Earnings
- Complete the Balance Sheet and Income Statement for 2019 and 2020
- You deposit $30,000 today. If it grows to $60,000 in 10 years, what rate of interest must have your earned?
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Today is T=0. If you make five annual deposits into a bank account that pays interest at the rate of 9%, how large must the deposits be if the account is worth $75,000 at the end of the fifth year (T=5) and the first deposit is made today?
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You will start college on your 18th birthday. Your parents need $100,000 on that day. How much should they deposit into a bank account at the moment of your birth if the bank pays interest at the rate of 6%?
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