Florida Tech is building a new engineering facility that will cost $40 million. Williams Construction will borrow $38 million from Wells Fargo bank and pay the remainder immediately as a down payment. Florida Tech will pay 5% interest but will make no payment for 5 years, at which time the entire amount will be due. How much will Florida Tech’s payment be?

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.