1. On January 1, you win $47,250,000 in the state lottery. The $47,250,000 prize will be paid in equal installments of $5,250,000 over 9 years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 5%.
2. Lightfoot Inc., a software development firm, has stock outstanding as follows: 47,000 shares of cumulative preferred 1% stock, $105 par and 105,000 shares of $135 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $41,000; second year, $48,000; third year, $78,000; fourth year, $119,000. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Determine the dividends per share on each class of stock for each of the four years. Round your answers to the nearest cent. If no dividends are paid in a given year, enter “0”.
Line Item Description 1st Year 2nd Year 3rd Year 4th Year
Preferred stock (dividends per share)
$
fill in the blank 2
$
fill in the blank 3
$
fill in the blank 4
$
fill in the blank 5
Common stock (dividends per share)
$
fill in the blank 6
$
fill in the blank 7
$
fill in the blank 8
$
fill in the blank 9
3. Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due:
Account Due Date Amount
Avalanche Auto August 11 $12,000
Bales Auto October 3 2,400
Derby Auto Repair June 22 3,900
Lucky’s Auto Repair September 7 6,600
Pit Stop Auto September 21 1,100
Reliable Auto Repair July 2 9,750
Trident Auto August 24 1,800
Valley Repair & Tow May 24 4,000
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Determine the number of days each account is past due as of October 31.
Account Due Date Number of Days Past Due
Avalanche Auto August 11
fill in the blank 2
Bales Auto October 3
fill in the blank 3
Derby Auto Repair June 22
fill in the blank 4
Lucky’s Auto Repair September 7
fill in the blank 5
Pit Stop Auto September 21
fill in the blank 6
Reliable Auto Repair July 2
fill in the blank 7
Trident Auto August 24
fill in the blank 8
Valley Repair & Tow May 24
fill in the blank 9
