Wilson foods corporation leased a commercial food processor on september 30, 2016. the five-year lease agreement calls for wilson to make quarterly lease payments of $195,774, payable each september 30, december 31, march 31, june 30, with the first payment at september 30, 2016. wilson’sincremental borrowing rate is 12%. wilson records depreciation on a straight-line basis at the end of each fiscal year. wilson recorded the lease as follows: september 30, 2016asset (calculated below)3,000,000 lease payable (calculated below)3,000,000 lease payable195,774 cash (first payment)195,774 calculation of the present value of lease payments$195,774 × 15.32380* = $3,000,000 (rounded)*present value of an annuity due of $1: n = 20, i = 3%required: what would be the pretax amounts related to the lease that wilson would report in its statement of cash flows for the year ended december 31, 2016?

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.