Question 7

Question 7 - Number of payment paid until January 2004: 1...

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Question 7 Calculate the outstanding receivables to Senec Construction Company at the end of August 31, 2008: Contract price: $8,000,000 2% down payment: $8,000,000 * 0.02 = $160,000 The rest value of the contract price: $8,000,000 - $160,000 = $7,840,000 Installment periods: 20 Quarterly payment: $7,840,000 / 20 = $392,000
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Unformatted text preview: Number of payment paid until January 2004: 1 Number of payment need to pay: 5 * 4 - 1 = 19 Future value of the rest contract price: $9,845,812 By calculate the future value of the rest contract price of $9,845,821, we could find out the outstanding receivable is $9,845,821 at the end of August 31, 2008....
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