The wonderful widget company future. a. Based on the accumulated debt at the end of 2013, calculate the 2014 interest payment. Assume an interest rate of 8.2% b. Calculate the total outlays for 2014, the year-end surplus or deficit, and the year-end accumulated debt. c. Based on the accumulated debt at the end of 2014, calculate the 2015 interest payment, again assuming an interest rate 8.2% d. Assume that in 2015, the Widget Company has receipts of $1,050,000, holds operating costs and employee benefits to their 2014 levels and spends no money on security. Calculate the total outlays for 2015, the year-end surplus or deficits, and the year-end accumulated debt. e. Imagine that you are the CFO of the Wonderful Widget Company at the end of 2015. Write a tree-paragraph statement to shareholders about the company’s future prospects.

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Chapter 4.F, Problem 18E

To determine

The wonderful widget company future.

a. Based on the accumulated debt at the end of 2013, calculate the 2014 interest payment. Assume an interest rate of 8.2%

b. Calculate the total outlays for 2014, the year-end surplus or deficit, and the year-end accumulated debt.

c. Based on the accumulated debt at the end of 2014, calculate the 2015 interest payment, again assuming an interest rate 8.2%

d. Assume that in 2015, the Widget Company has receipts of $1,050,000, holds operating costs and employee benefits to their 2014 levels and spends no money on security. Calculate the total outlays for 2015, the year-end surplus or deficits, and the year-end accumulated debt.

e. Imagine that you are the CFO of the Wonderful Widget Company at the end of 2015. Write a tree-paragraph statement to shareholders about the company’s future prospects.

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