Section 2 page 92 chapter 15 page 93 also the dollar

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Unformatted text preview: be quarters, semi-annually, annually or some other appropriate value. Then the formula looks ate cell C16 to get the principle value. This value is a positive value indicating that the cash flow is into the writer for the formula. If the cash flow is out from the writer of the formula the value should be negative. This affects the presentation of the answer. Then the formula looks at cell C17 to determine the value of the balloon payment and looks at cell C18 to determine if the payment is made at the end (ordinary annuity) of the interest period or at the beginning (annuity due) of the interest period. Since the value of the principle positive, the answer will be negative. In the data files negative values are usually defaulted to be in red text and in parentheses such as ($1,100.65). This enhances the presentation on the display screen and on the printout even if the printout is a single color text as laser or inkjet black since the red text will be slightly fainter than the black text of the display. Had the principle value been negative indicating cash flows out at the initiation of the note payable the answer would be positive in nature and would be displayed in black as $1,100.65. The formula in cell D19 has been set up so that you can change the values of the formula and see the change in the answer. The cells below D19 are formatted with other options but utilize the same data to show some of the various formatting options available. These options include currency variations, accounting variations, and number variations. Notice that the right side of the cells are not evenly justified amongst themselves due to the different formatting. Section 2, Page 92 Chapter 15, Page 93 Also the dollar sign ($) is not always placed in the same position amongst the different formatting. This issue is addressed later in the text. While the issue of positive or negative results of these cash flow sensitive formulas are important, the presentation of negative numbers may be undesirable regardless of the nature of principle value. The “Boss”...
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This note was uploaded on 09/19/2010 for the course ACCT 220 taught by Professor Ullmann during the Fall '10 term at University of Nebraska Kearney.

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