Solution
Johnstone company
Requirement 1
Table values are based on :
n = 5
i = 10%
Cash Flow Amount Present Value
Installment $ 9,000 $ 34,117
Down Payment $ 17,000 $ 17,000
Value of Equipment $ 51,117
Requirement 2
Table or calculator function : FVAD of $ 1
Future Value : $470,000
n = 5
i = 8%
Deposit 74,180
$470,000 = Annuity amount x 6.3359*
Future value of an annuity due of $1: n = 5, i = 8% (from FVAD of $1)
Requirement 3
Table or calculator function : PVAD of $ 1
Payment $ 127,000
n = 15
i = 10%
Liability :
PVAD = $ 127,000 (8.36669*) =$10,62,570 = Lease Liability
Present value of an annuity due of $1 : n = 15 , i = 10% (From PVAD of $1)
Please give thumbs up if you like my answer :-)
t Required 1 Required 2 Required 3 On June 30, 2021, the Johnstone Company purchased equipment...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently EV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $12.000 on the purchase date and the balance in six annual installments of $10,000 on each June 30 beginning June 30,...
Excuse the order of the pictures.
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on...
Johnstone Company is facing several decisions regarding
investing and financing activities. Address each decision
independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
1. On June 30, 2021, the Johnstone Company
purchased equipment from Genovese Corp. Johnstone agreed to pay
Genovese $18,000 on the purchase date and the balance in six annual
installments of $6,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) points (8 01:54:58 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Problem 5-2 (Algo) Present and future value (LO5-7,5-8, 5-10) Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $14,000 on the purchase date and the balance in five annual installments...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Saved Hel Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $23,000 on the purchase date and the balance in five annual installments of $6,000 on each June 30 beginning June...