Need help in doing financing options worksheet 19 SWARS Consulting and Sales Inc

Question

Need help in doing financing options worksheet

19 SWARS Consulting and Sales Inc Post Closing Trial Balance 2 March 31, 2018 204,900 75,580 5 Cash 6 Accounts Receivable 7Allowance for Uncollectible Accounts 8 Supplies 9 Inventory 10 Prepaid Insurance 11 Land 12 Building 13 Accumulated Depr-Building 4 Office Equipment 15 Accumulated Depr- Office Equip 16 Computer Equipment 17 Accumulated Depr- Computer 18 Accounts Payable 19 Utilities Payable 20 Wages Payable 21 Interest Payable 22 Lona term Note Pavable 4,690 56,500 58,596 57,890 160,000 550,000 15,650 856,850 22,500 656,500 debt equity 10,250 56,560 16,850 58,950 25,000 490.000 pctb Asset aquisitions planned Dep financing options worksheet partial balance sheets Ready O Type here to search

Explanation / Answer

Q Cash Received Annual Cash required                                 2,000,000.00                100,000 (2,000,000*5%) Face Amount $        2,000,000 Face Rate 5% Interest Payment Periods 10 Interest Payment $              50,000 (2000000*5%/2) Term 5 Periods 10 Market Rate 4% PV Factor used single sum 0.8203 =(1/1.02)^10 since semi annual payment rate used for pv factor would be 4%/2=2% Annuity 8.9826 =PV(2%,10,-1,0,0) PV Face $        1,640,697 PV interest $            449,129 Cash Received Annual Cash required                                 2,500,000.00                  75,000 (2500,000*3%) Face Amount $        2,500,000 Face Rate 3% Interest Payment Periods 12 (6*2) Interest Payment $              37,500 (2500000*3%/2) Term 6 Market Rate 4% PV Factor used single sum 0.8535 =(1/1.02)^8 since semi annual payment rate used for pv factor would be 4%/2=2% Annuity 7.3255 =PV(2%,8,-1,0,0) PV Face $        2,133,726 PV interest $            274,706 Cash Received Annual Cash required                                 2,075,000.00                  50,000 (500000*0.1) Number of Existing shares 400000 Number of new shares 500000 Total shares at year end 900000 Market Price 4.15 Dividend Rate 0.1 Dividend Period Infinity PIC year end 2475000 =400000+500000*(4.15) PIC> Par year end 1575000 =500000*(4.15-1)

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