Tome Insert Draw Page Layout Formulas Data Review View O Tell me e Share X - A A Σ E Insert v Calibri (Body) • 11 2 Wrap Text v General 7- * Delete v BIU H $- % > 8 48 Paste E Merge & Center v Conditional Format Formatting as Table Styles Cll Sort & Filter Find & Select Ideas Format v 9Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Check f 6 :x v fx M Bond Par Ameunt 20,000,000 00 LEVEL DEBT Term in Years 20 Debt Service Annualy (P 1,000,000 00 Principa (P) Debt Service(P (D Year Coupon Interest 0 Tax Base with 2 ncr Operating Property Taes Tetal Taes Debt Service Propeorty Ta Rate Cument Ta ase s00,000,000,000 15.3432344 4656.17654 20.000.00000 500.000.000 00 Operating Prop. Ta Rate per $100 valuation 040 1,000,000 00 1,000.000.00 200,000 00 204.000 00 661,46447 0.1N 33853553 1200,000 00 1.204.000.00 02000 02000 662.655 10 032% 33734490 S10.000.000.00 0.1961 0209

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Is it valid to claim in public statements that this bond issue will “pay for itself?”

Adams Excel Exercise 4.xls - Compatibility Mode – Saved to my Mac
c
AutoSave
OFF
Home
Insert
Draw
Page Layout
Formulas
Data
Review
View
O Tell me
2 Share
O Comments
v A A
Σ
I
Insert v
Calibri (Body)
11
ab Wrap Text v
General
Ex Delete v
A v v
$ • % 9
Conditional Format
Formatting as Table Styles
Paste
A
00
.00
Cell
Sort &
Filter
Find &
Select
BIUV
E Merge & Center v
Ideas
Sensitivity
H Format v
O Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates.
Check for Updates
N6
fx
A
D
E
G
H
K
M
N
1
2
2 Bond Par Amount:
20,000,000.00
LEVEL DEBT
4 Term in Years:
20
5
6 Debt Service Annually (P +1):
1,000,000.00
Year
Principal (P)
Coupon
Interest ()
Debt Service (P+)
Tax Base with 2% Incr.
Operating Property Taxes
Total Taxes
Debt Service Propeorty Tax Rate
7
(DS)
8 Current Tax Base:
500,000,000,000
15,343,823.44
4,656,176.56
20,000,000.00
9
10 Operating Prop. Tax Rate:
11 per $100 valuation
1,200,000.00
1,204,000.00
338,535.53
500,000,000.00
510,000,000.00
0.40
661,464.47
0.18%
1,000,000.00
200,000.00
0.2000
0.2000
662,655.10
664,775.60
2
0.32%
337,344.90
1,000,000.00
204,000.00
0.1961
0.2039
12
3
0.56%
335,224.40
1,000,000.00
520,200,000.00
208,080.00
1,208,080.00
0.1922
0.2078
668.498.34
1,000,000.0o
530,604,000.00
1,212,241.60
0.1885
13
4
0.84%
331,501.66
212,241.60
0.2115
14
5
674,113.73
1.14%
325,886.27
1,000,000.00
541,216,080.00
216,486.43
1,216,486.43
0.1848
0.2152
15
6
681,798.62
1.42%
318,201.38
1.000.000.00
552,040,401.60
220,816.16
1,220,816.16
0.1811
0.2189
Level Debt
691,480.16
1,225,232.48
1,229,737.13
1,234,331.88
1,239,018.51
1,243,798.88
16
7
1.65%
308,519.84
1,000,000.00
563,081,209.63
225,232.48
0.1776
0.2224
17
1,200,000.00
702,889.59
1.93%
297,110.41
1,000,000.00
574,342,833.82
229,737.13
0.1741
0.2259
18
716,455.36
2.14%
283,544.64
1,000,000.00
585,829,690.50
234,331 88
0.1707
0.2293
19
1,000,000.00
10
731,78750
2.28%
268,212.50
1,000,000.00
597,546,284.31
239,01851
0.1674
0.2326
251,527.74
609,497,210.00
20
11
748,472.26
2.42%
1,000,000.00
243,798.88
0.1641
0.2359
800,00000
21
12
766,585.28
2.56%
233,414.72
1,000,000.00
621,687,154.20
248,674.86
1,248,674.86
0.1609
0.2391
600,00000
1,253,648.36
1,258,72133
786,209.87
213,790.13
634,120,897.28
253,648.36
22
13
2.70%
1,000,000.00
0.1577
0.2423
23
14
807,43753
2.82%
192,562.47
1,000,000.00
646,803,315.23
258,721.33
0.1546
0.2454
400,00000
830,207.27
659,739,381.53
672,934,169.16
24
15
2.94%
169,792.73
1,000,000.00
263,895.75
1,263,895.75
0.1516
0.2484
200,00000
25
16
854,615.37
3.05%
145,384.63
1,000,000.00
269,173.67
1,269,173.67
0.1486
0.2514
26
17
880,681.13
3.14%
119,318.87
1.000,000.00
686,392,852.55
274,557.14
1.274.557.14
0.1457
0.2543
0.00
27
1 2 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20
18
908,334.52
3.20%
91,665.48
1,000,000.00
700,120,709.60
280,048.28
1,280,048.28
0.1428
0.2572
1,285,649 25
1.291.362. 23
28
19
937,401.23
3.26%
62,598.77
1,000,000.00
714.123.123.79
285,649.25
0.1400
0.2600
Seriesi - Series2
29
20
967,960.51
331%
32,039.49
1,000,000.00
728,405,586.26
291,362.23
0.1373
0.2627
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Level
Decreasing
+
+
86%
Transcribed Image Text:Adams Excel Exercise 4.xls - Compatibility Mode – Saved to my Mac c AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View O Tell me 2 Share O Comments v A A Σ I Insert v Calibri (Body) 11 ab Wrap Text v General Ex Delete v A v v $ • % 9 Conditional Format Formatting as Table Styles Paste A 00 .00 Cell Sort & Filter Find & Select BIUV E Merge & Center v Ideas Sensitivity H Format v O Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Check for Updates N6 fx A D E G H K M N 1 2 2 Bond Par Amount: 20,000,000.00 LEVEL DEBT 4 Term in Years: 20 5 6 Debt Service Annually (P +1): 1,000,000.00 Year Principal (P) Coupon Interest () Debt Service (P+) Tax Base with 2% Incr. Operating Property Taxes Total Taxes Debt Service Propeorty Tax Rate 7 (DS) 8 Current Tax Base: 500,000,000,000 15,343,823.44 4,656,176.56 20,000,000.00 9 10 Operating Prop. Tax Rate: 11 per $100 valuation 1,200,000.00 1,204,000.00 338,535.53 500,000,000.00 510,000,000.00 0.40 661,464.47 0.18% 1,000,000.00 200,000.00 0.2000 0.2000 662,655.10 664,775.60 2 0.32% 337,344.90 1,000,000.00 204,000.00 0.1961 0.2039 12 3 0.56% 335,224.40 1,000,000.00 520,200,000.00 208,080.00 1,208,080.00 0.1922 0.2078 668.498.34 1,000,000.0o 530,604,000.00 1,212,241.60 0.1885 13 4 0.84% 331,501.66 212,241.60 0.2115 14 5 674,113.73 1.14% 325,886.27 1,000,000.00 541,216,080.00 216,486.43 1,216,486.43 0.1848 0.2152 15 6 681,798.62 1.42% 318,201.38 1.000.000.00 552,040,401.60 220,816.16 1,220,816.16 0.1811 0.2189 Level Debt 691,480.16 1,225,232.48 1,229,737.13 1,234,331.88 1,239,018.51 1,243,798.88 16 7 1.65% 308,519.84 1,000,000.00 563,081,209.63 225,232.48 0.1776 0.2224 17 1,200,000.00 702,889.59 1.93% 297,110.41 1,000,000.00 574,342,833.82 229,737.13 0.1741 0.2259 18 716,455.36 2.14% 283,544.64 1,000,000.00 585,829,690.50 234,331 88 0.1707 0.2293 19 1,000,000.00 10 731,78750 2.28% 268,212.50 1,000,000.00 597,546,284.31 239,01851 0.1674 0.2326 251,527.74 609,497,210.00 20 11 748,472.26 2.42% 1,000,000.00 243,798.88 0.1641 0.2359 800,00000 21 12 766,585.28 2.56% 233,414.72 1,000,000.00 621,687,154.20 248,674.86 1,248,674.86 0.1609 0.2391 600,00000 1,253,648.36 1,258,72133 786,209.87 213,790.13 634,120,897.28 253,648.36 22 13 2.70% 1,000,000.00 0.1577 0.2423 23 14 807,43753 2.82% 192,562.47 1,000,000.00 646,803,315.23 258,721.33 0.1546 0.2454 400,00000 830,207.27 659,739,381.53 672,934,169.16 24 15 2.94% 169,792.73 1,000,000.00 263,895.75 1,263,895.75 0.1516 0.2484 200,00000 25 16 854,615.37 3.05% 145,384.63 1,000,000.00 269,173.67 1,269,173.67 0.1486 0.2514 26 17 880,681.13 3.14% 119,318.87 1.000,000.00 686,392,852.55 274,557.14 1.274.557.14 0.1457 0.2543 0.00 27 1 2 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 18 908,334.52 3.20% 91,665.48 1,000,000.00 700,120,709.60 280,048.28 1,280,048.28 0.1428 0.2572 1,285,649 25 1.291.362. 23 28 19 937,401.23 3.26% 62,598.77 1,000,000.00 714.123.123.79 285,649.25 0.1400 0.2600 Seriesi - Series2 29 20 967,960.51 331% 32,039.49 1,000,000.00 728,405,586.26 291,362.23 0.1373 0.2627 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Level Decreasing + + 86%
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