WEEK 5 FINAL CONTINUED

Keyser Beverage Company reported the following items in the most recent year.

Net income		$40,000
Dividends paid		5,000
Increase in accounts receivable		10,000
Increase in accounts payable		7,000
Purchase of equipment (capital expenditure)		8,000
Depreciation expense		4,000
Issue of notes payable		20,000

Compute net cash provided by operating activities, the net change in cash during the year. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Keyser Beverage Company Statement of Cash Flows
		$
	$					$
		$
	$				$
		$						$
		$
	$
								$
Issued common stock to retire $  liquidity. Its financial flexibility is  .

Chris Spear invested $15,000 today in a fund that earns 8% compounded annually. (Use the tables below.)

To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semiannually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Investment at 8% annual interest		$ [removed]
Investment at 8% annual interest, compounded semiannually		$ [removed]

Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8 years, with the first withdrawal to take place 5 years from today. (Use the tables below.)

If the fund earns 8% interest, how much must Amy invest today? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Investment amount

$ [removed]

Zach Taylor is settling a $20,000 loan due today by making 6 equal annual payments of $4,727.53. (Use the tables below.)

What payments must Zach Taylor make to settle the loan at the same interest rate but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Payments

$ [removed]

Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money.

Compute the amount Alan would withdraw assuming the investment earns simple interest. (Round answers to 0 decimal places, e.g. 458,581.)

Total withdrawn

$ [removed]

(Use the table below.)

Compute the amount Alan would withdraw assuming the investment earns interest compounded annually. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Total withdrawn

$ [removed]

(Use the table below.)

Compute the amount Alan would withdraw assuming the investment earns interest compounded semiannually. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Total withdrawn

$ [removed]