CMA Study Group

END/ BEGINNING OF THE YEAR PAYMENTS

  • 1.  END/ BEGINNING OF THE YEAR PAYMENTS

    Posted 13 days ago
    Hi All,
    Can someone explain how the end of the year and beginning-of-the-year payments affect cash flow?

    Reference question

    Crown corporation has agreed to sell some used computer equipment to Bob Parsons, one of the company's employees, for $5,000. Crown and Parsons have been discussing alternative financing arrangements for the sale.

    Crown Corporation has offered to accept a $1,000 down payment and set up a note receivable for Bob Parsons that calls for a $1,000 payment at the end of each of the next 4  years. If Crown uses a 6% discount rate, the present value of the note receivable would be

    Answer: 3465


    Regards


  • 2.  RE: END/ BEGINNING OF THE YEAR PAYMENTS

    Posted 12 days ago


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    Mohammed Nadeem
    Accountant
    Vi Sigma Apparel Group FZE
    Abu Dhabi
    United Arab Emirates
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