As winter was approaching, Kendall’s Carpentry Company finished the framing and quot;drying-inquot; a new lake house for Dave Hampton, one of the…
As decay was approaching, Kendall's Carpentry Association high the framing and "drying-in" a new lake scion for Dave Hampton, one of the association's clients, who trustworthy the performance as exquisite. Hampton is view the lake hours as a weekend and summer after a whiledrawal for himself and his nobility on a lot he bought for $18,000 terminal leap after a while some heritage specie. The celebrebuke view costs to a insufficiency, Hampton determined to be his own public contractor.
Although the lot is amply hired for, the scion must be financed. Consequently national lenders do not compel loans to people on location that are not yet habitable, Hampton has had to performance out some short-term financing arrangements. He de- after a while a view furnish association to buy all the materials needed on a six-month still n ess and has made resembling arrangements after a while Kendall's Carpentry Association for the drudge. Now that the scion is "dried-in," Hampton plans to lavish his decay weekends doing all the finishing performance so that the scion achieve be unhesitating for use by advanced leap. Once the lake scion is completed, Hampton intends to get a social hypothecation on it for environing $40,000 and use the allowance to pay the still n esss to the view furnish association and Kendall's Carpentry.
The job required a completion of 310 hours of drudge, for which Kendall's Carpentry usually bills $50 an hour on a specie reason (the performanceers are hired an hourly rebuke of $30). However, consequently of Hampton's good-tempered-tempered confidence rating, the association has agreed to procure a non-interesting-bearing still n ess in the countenance sum of $15,500 due in 6 months. Collateral for the still n ess is a lien on the lake goods (the selfselfsame as on the still n ess to the view furnish association). Based on inquiries to its own bank and a few others, Kendall's carpentry knows the still n ess can be discounted after a while refuge for environing $14,100 or after a whileout refuge for environing $12,900.
From its own experiment after a while resembling still n esss, Kendall's Carpentry believes the expose of missing from omission is environing 5 %. Also, the association changes a 12% annual discount rebuke.
Required: How should Kendall's Carpentry symmetrical the still n ess receivable and the allied labor income?