5. 075 points 11% bonds, dated January 1, with a face amount of $700 million on

Question

5. 075 points 11% bonds, dated January 1, with a face amount of $700 million on January 1 Most Solutions, Inc., issued 2016. The bonds mature in 2026 (10 years). For bonds of similar risk and maturity the market yield is 13% Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows January 1, 2016 Cash (price) Discount on bonds (difference) 619,707,200 80,292,800 700,000,000 Required: What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2016? (List any cash outflow with a minus sign. Enter your answers in whole dollars.)

Explanation / Answer

in $ Cash flow from Operating Activities -77000000 working Interest payment 700000000*11% -77000000 Cash flow from Investing activities $0 Cash flow from financing activities 619707200 If any doubt please comment

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