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Phoenix [80]
3 years ago
14

Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2018, for $283,294,7

20. The bonds mature on December 31, 2027 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31.
Indicate the amounts reported on the financial statements below for the year ending December 31, 2018.


Balance Sheet:

Net Liability _______

Income Statement:

Interest Expense _________

Statement of Cash Flows:

Operating ________

Investing ________

Financing ________

Business
1 answer:
Olegator [25]3 years ago
4 0

Answer:

<u>Balance sheet:</u>

Net liability = $285,349,947

<u>Income statement:</u>

Interest expense = $34,055,227

Statement of cash flows:

Operating: $32,000,000

Investing: Nil

Financing: $283,294,720

Explanation:

The workings are attached:

<u>Balance sheet</u>

Net liability = carrying value at the end of the year = $285,349,947

This will appear in the balance sheet as net liability.

<u>Income statement:</u>

Interest expense will be appearing in the income statement.

Interest expense = $32,000,000

<u>Statement of cash flows:</u>

<u>Operating cash flow:</u>

Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement.

Operating: It is the interest expense = $32,000,000

Investing cash flow:

Cash flow from investing activities is one of the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.

Investing: This will be nil, as this is not an investment

Financing cash flow

Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends

Financing: This will be the $283,294,720

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zhuklara [117]

Answer:

No

Explanation:

Temporal difference or some times written as TD learning process may be defined as an approach to learning that describes how to predict a given  quantity which depends on the future values for a given signal.

TD or temporal difference learning does not require the knowledge of transition probability tables. It only requires the knowledge of state and action plan. It also does not require the knowledge of reward function.

8 0
2 years ago
Under the allowance method, writing off an uncollectible account Group of answer choices affects both balance sheet and income s
marishachu [46]

Answer:

Under the allowance method writing of uncollectible account will only affect Balance sheet accounts

Explanation:

Uncollectibles when write of under allowance method will create reduce account receivable one side and also results in reduction of allowance for receivable on other side created previously, thus having impact only on balance sheet:

Entry will be:

Dr: Allowance for Doubtful Debts (Balance Sheet Item)  

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4 0
3 years ago
The current price of a 10 year $1000 par value bond is $1158.91. Interest on this bond is paid every 6 months, and the nominal a
tatuchka [14]

Answer:

16.22%

Explanation:

To calculate the annual coupon rate, you can use the following formula:

Coupon Rate= (Annual coupon payment/Par value of the bond)* 100%

Annual coupon payment= $1158.91*14%= 162.2

Par value of the bond= $1000

Coupon Rate= (162.2/1000)*100%

Coupon Rate=0.1622*100%

Coupon Rate= 16.22%

The annual coupon rate on this bond is 16.22%

4 0
3 years ago
Miser Materials paid $27,500 in dividends and $28,311 in interest over the past year while net working capital increased from $1
Maksim231197 [3]

Answer:

Cash flow from assets = $51,800

Explanation:

Cash flow from assets = Cash flow to Creditors + Cash flow to Shareholders

Cash flow to creditors = Interest Paid – (New loans taken – Paid Loans)

                                     = $28,311 - ($0 - $21,000)

                                     = $28,311 + $21,000

                                      = $49,311

Cash flow to shareholders = Dividends paid – Net new equity

                                            = $27,500 – $25,000

                                            = $2,500

Cash flow from assets = $49,311 + $2,500 = $51,811

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