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

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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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