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AnnyKZ [126]
1 year ago
14

Determine whether the following would be reported in the financing activities section of the statement of cash flows and, if so,

specify whether it is a cash inflow or outflow.
(a) Sale of bonds at a discount.
Business
1 answer:
Marat540 [252]1 year ago
7 0

While you buy a bond, you're loaning cash to both a government and a corporation. whilst these entities first difficulty the bonds, they're bought at "par", which means you lend, say, $a hundred, and at the adulthood of the bond, you'll acquire $100 lower back. at the time of the difficulty, the coupon charge is also set, primarily based on modern-day interest quotes and the entity's credit score. This determines the yearly or semiannual quantity you will acquire when buying the bond.

A bond can be bought on the secondary market before adulthood. however, the price of this bond will promote greater than par (i.e. a premium) if present-day interest quotes decrease than what they had been while the bond was issued and less than par if interest fees have gone up (i.e. a reduction).

An example, a bond is issued these days, maturing in 10 years with an annual coupon of five%. In 5 years, hobby fees have risen to 7%, so someone shopping for the bond with a five% coupon would demand a discount at the face price (in any other case, they could just buy the 7% bond at par).

Learn more about bond here: brainly.com/question/25965295

#SPJ4

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The correct answer is: <u>Is it balanced?</u>

Explanation:

This question based on ethics would be the most appropriate to assess these situations. Because when you confront your friend that it would not be fair and ethical for him to share an article written by him to be used as if you had written it, he responds to you with behavior that you consider unethical, but in these situations there is no balance comparison, as they are different situations.

Ethical issues seek to solve conflicting problems and dilemmas.

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A positive result from the scientific management approach is an increase in _______ productivity.
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What is the main aims of forming a maize milling company ​
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to provide I

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3 0
2 years ago
A class-action suit against a utility company resulted in a settlement of $2 million for 70,000 customers. If the legal fees, wh
amm1812

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Each plantiff receives approximately $22.86

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A class action lawsuit is one in which the plaintiff is a group of people, duly represented by a member of that group. In this case, the group of people is made up of 70,000 customers.

To calculate the amount each plaintiff receives, we will first subtract the legal fee from the total settlement, to obtain effective amount to be shared

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Therefore amount received all plaintiff = $2,000,000 - $400,000 = $1,600,000.

Next we will divide total amount to be shared by the number of plaintiff;

Amount each receives = $1,600,000 ÷ 70,000 = $22.857 = $22.86 (to 2 decimal places).

It is important that you know also that legal fees are amounts charge by lawyers on the settlement to be paid when filing a lawsuit. it is usually set as a certain percentage of the settlement amount to be paid.

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