ASSIGNMENT 4- RECEIVABLES (ADDITIONAL CONCEPT)

B NUMBER 1:
Martin Bank
Principal Amount
Direct loan origination costs 4,000
Origination Fee (150,000 x 4%)
CA

DUFF:
Principal Account
Origination Fee (150,000 x 4%)
CA

C NUMBER 2:
Present value
EIR
Months
INCOME FROM THE LOAN (IN 2003 FS)

B NUMBER 3:
Future Cash Flow
Multiply by PV of ₱ @12%, n=4
Present Value of The Loan Receivable

Face amount value

presentt value of the loan receivable
Unearned interest income

Net effect in Welcome's profit in 2021

Interest Income (317,760 x 12%)
Unrealized Loss
Net decrease in profit

A NUMBER 4:
Previous CA
less: Impairment loss
CA
Multiply: effective interest rate
Interest Income
D NUMBER 5
PV of future Cash Flows (1.4M x PV ann. due @12%, n=3)
CA
Impairment Loss

DATE
Dec 31, 20x1
Jan 1, 20x2
Jan 1, 20x5

C NUMBER 6
DATE
jan 1, 20x3
jan 1, 20x4
jan 1, 20x5
PV of remaining cash flows

Face amount
Direct original costs
Less: Origination Fees
Initial CA

DATE
jan 1, 20x1
dec 31, 20x1
dec 31, 20x2

PV of Remaining cash flow

Less: Carrying Amount
IMPAIRMENT LOSS

PV od remaining cash flow

CF

A NUMBER 7:
Bigco, INC. did not surrender the control over any amount of the transferred receivables because o
D NUMBER 8:

C NUMBER 9:
YEAR
1
2
3

Servicing asset- acquisition fee

Portion in Yr 1.
AMORTIZATION

C NUMBER 10:
Portion of AR
FEE
Service Fee

Portion of AR
Interest
Fraction
Int. Exp.
TOTAL- Cost of Factoring the Receivables

C NUMBER 11:
Maturity Value = 500,000 + (500,000 x 8%)
Discount = 540,000 x 10% x 6/12
Net Proceeds

C NUMBER 12:
Maturity Value [1M + (1M x 12% x 90/365)]
Protest Fee
Amount transferred to accounts receivable
 150,000
4,000
6,000
148,000

150,000
6,000
144,000

194,000
12.40%
1/2

500,000
0.64
317,760

500,000
317,760
182,240

38,131
182,240
144,108

8,200,000
623,246
7,576,754
10%
756,675
 3,766,071
5,600,000
1,833,929

COLLECTION INTEREST INCOME AMORTIZATION PRESENT VALUE

3,766,071
1,400,000 0 1,400,000 2,366,071
1,400,000 283,929 1,116,071.48 1,250,000

CASH FLOW PV OF 1 @ 11% PV FACTORS PV

1,000,000 n=0 1. 00 1,000,000
1,500,000 n=1 0. 90090090 1,351,351
1,500,000 n=2 0. 81162240 1,217,434
3,568,784.95

4,000,000
364,098
240,000
4,124,098

COLLECTION INTEREST INCOME AMORTIZATION PRESENT VALUE

4,124,098
480,000 453,651 26,349 4,097,749
480,000 450,752 29,248 4,068,501

3,569,784
4,068,501
499,716

3,568,784. 95
1,000,000
2,568,784. 95
11%
282,566

unt of the transferred receivables because of the entity is obligated to repurchase them.
EXPECTED FEES FRACTIONS
40,000 40/80
30,000 30/80
10,000 10/80
80,000

60,000
40/80
30,000

750,000
2%
15,000

750,000
12%
13/93
12,575
27,575

540,000
27,000
513,000

1,029,589
1,000
1,030,589