ASSETS 2014 2015 Current Assets 74 147 727 27 975 125 S 41

ASSETS 2014 2015 Current Assets: $ 74 147 727 27 $ 975 $125 S 41 137 476 Cash and cash equivalents Short Terrn Investments Accounts receivable, net Inventories Total current assets $676 Investments S 100 Property and Equipment: $ 56 70 $ 126 (45) $ 81 $ 54 47 $ 101 (24) Medical and office equipment Vehicles Total Less: Accumulated depreciation Net property and equipment Total assets $1,181 $853 LIABILITIES AND EQUITY Current Liabilities: Notes payable Accounts payable Accrued expenses $13 40 496 S 549 $ 13 21 337 $371 Total current liabilities Long-term debt Totalliabilities 154 167 703 $ 478 $1,181 $538 Equity (net assets) $315 Total liabilities and equity $ 853

Solution

a.

Present value of Lump Sum = $100 / (1 + 10%) ^ 5

= $100 / 1.61051

= $2.09

Present value of Lump Sum receive in five year is $62.09.

b.

Future Value of Lump Sum = $100 × (1 + 6.90%) ^ 5

= $100 × 1.3960

= $139.60

Future Value of Lump Sum invested today is $139.60.

c.

Future Value of Lump Sum = $250 × (1 + 7.80%) ^ 5

= $250 × 1.4558

= $363.94

Future Value of Lump Sum invested today is $363.94.

d.

Total interest paid in 9 months = $150,000 × 2.75% × 9 /12

= $3,093.75

Total interest paid in 9 months is $3,093.75.