Reference no: EM131661711
Questions -
Q1. On June 1st 2016, Cougar Corp purchases 3-years of prepaid insurance for $5,400. What would be the amount of prepaid insurance listed under current assets on Cougar Corp's 2016 Balance Sheet (as of December 31st 2016)?
Q2. Use the following information for problems
During 2016 the DLD Company had a net income of $75,000. Below is information taken from a DLD's last two balance sheets:
2015 2016
Accounts Receivable (all current) 51000 54000
Accounts Payable (all current) 3000 4000
Land 100000 96000
Equipment 50000 50000
Accumulated Depreciation, Equipment 3500 5000
Common Stock 4200 12200
Additional information for 2016:
1. Long-term notes receivable related to a loan DLD made to another business entity in the amount of $10,000 were paid back in cash before maturity.
2. DLD sold a piece of land at a $500 loss. No other land was purchased during the period.
3. Dividends in the amount of $2,000 were paid during the year.
Required -
What was the amount of cash provided by operating activities for 2016?
What was the net cash inflow from investing activities for 2016?
Q3. On January 1st, 2016 Cougar Corp receives a three-year, $10,000 zero-interest-bearing note receivable in exchange for services provided to a customer. The present value of the cash flows associated with the note is $7,721.80. The implicit rate that equates the total cash to be received ($10,000 at maturity) to the present value of the future cash flows ($7,721.80) is 9%.
What is the carrying value of the note after interest revenue is recorded for 2016 (round to the nearest dollar)?
Q4. On January 1st 2016, Cougar Corp loaned Husky Corp. $19,465 cash and accepted a $20,000 note receivable with a duration of 3 years. The note has a 5% stated interest rate, payable at the end of each year. The market rate for notes of similar risk is 6%.
How much of the discount remains after interest revenue has been recorded for 2016? Round to the nearest dollar.