3 . Balance sheet . From the following balance sheet accounts , a . construct a balance sheet for 2013 and 2014 b . list all the working capital accounts c . find the net working capital for the years ending 2013 and 2014 d . calculate the change in net working capital for the year 2014 Chapter 2 : Problem 4 4 . Income statement . From the following income statement accounts , a . produce the income statement for the year Chapter 5 : Problem 3
3 . EAR . What is the EAR of a mortgage that is advertised at 7.75 % ( APR ) over the next twenty years and paid with monthly payments ?
Chapter 5 : Problem 5
5 . Present value with periodic rates . Let ’ s follow up with Sam Hinds , the dentist , and his remodeling project ( Chapter 4 , Problem 12 ). The cost of the equipment for the project is $ 18,000 , and he will finance the purchase with a 7.5 % loan over six years . Originally , the loan called for annual payments . Redo the payments based on quarterly payments ( four per year ) and monthly payments ( twelve per year ). Compare the annual cash outflows of the two payments . Why does the monthly payment plan have less total cash outflow each year ?