4. A conversion of a face value $1 million convertible bond for $1 million of co

Question

4. A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be:
                                
                                A. Reported as a $1 million investing cash inflowand outflow
                                B. Reported as a $1 million financing cash outflow and cash inflow
                                C.Reported as suplementary information to the cash flow statement
                                
                                
                                
                                                                                                                                                                                 

                                                In 2010 the company declared and paid cash dividend of $10 million and recorded depreciation expense in the amount                                                                                              
                                                                                             of $25 million. The company considers dividends paid a financing activity. The company's 2010 cash flow operations (in $ million)                                                                                              was closest to:                                                                                              
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             A. 25
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             B. 45
                                                
                                                C. 75
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             
                                                                                             

Explanation / Answer

4. (c)

(A) 25

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.