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Musya8 [376]
3 years ago
15

Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,700 million on July 1, 2018, at a price of $1,

680 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2018, if it uses the indirect method
Business
1 answer:
Gnoma [55]3 years ago
6 0

Answer:

Agee Technology, Inc.

Amounts related to the bonds to report in statement of cash flows for the year ended December 31, 2018:

1. Receipts from Bonds Issue = $1,680 million

2. Payment of Interests on Bonds = -$153 million

Explanation:

a) The interests are based on based on 9% of $1,700 million, the bonds' face value.

b) The same amounts will be reported either using the direct method or the indirect method.  The indirect method adjusts the net income with non-cash expenses instead of using the direct inflows and outflows from operating activities.

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Answer:

See Below

Explanation:

This is a problem of compound interest. The formula is:

F=P(1+r)^t

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P is the present value

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t is the time in years

P = 13,000

To double his money, that means, F = 26,000

a)

Now, r = 9% = 0.09, so time it takes:

F=P(1+r)^t\\26,000=13,000(1+0.09)^t\\2=1.09^{t}\\t=\frac{Ln(2)}{Ln(1.09)}\\t=8.04

So, its gonna take about 8.04 years to double

b)

Similarly, here we just use r = 0.06, so the calculation is:

F=P(1+r)^t\\2=1.06^t\\t=11.9

So, its gonna take about 11.9 years to double

c)

Here, the r is 11% or 0.11

So, the time it will take:

F=P(1+r)^t\\2 = 1.11^t\\t=6.6

So, it is going to take about 6.6 years to double

d)

The amount of time it takes to double his money decreases as the interest rate increases and the time increases as interest rate decreases.

8 0
2 years ago
Perform a horizontal analysis providing both the amount and percentage change. (Round Percentage answers to 1 decimal place. Dec
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Answer:

Find attached

Explanation:

Horizontal or trend analysis involves is a financial statement analysis technique that shows the percentage change or dollar change in a corresponding financial statement's item.

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Formula:

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Conversations with people who start their own business often reveal that Group of answer choices most small business owners begi
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2 years ago
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The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess
OlgaM077 [116]

Answer:

Explanation:

1.Total Debt = Total Assets – Total Equity  = 2,700,000 – 1,550,000

= $1,150,000

2.Total assets = Total liabilities +Total equity = $2,700,000

3.Current Assets = Total Assets – Plant and Equipment  = 2,700,000-2,300,000  = 400,000

4.Current Liabilities = Total Liabilities – Long term debt = 1,150,000 – 748,000  = $402000

5.Accounts payables and accruals = current liabilities – notes payables

= 402000  – 150,000  = $252000

6.Working capital = Current Assets – Current Liabilities  = 400,000-402,000

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7.Net operating working capital = Current assets – Accounts payables and accruals  = 400,000 – 252,000  = 148,000

8.Difference = -2,000-148,000 = -150,000  (indicates note payable)

Recalculation with new information:

1.Total Debt = Total Assets – Total Equity  = 4,000,000 – 2,000,000 -500,000 =  

= $1,500,000

2.Total assets = Total liabilities +Total equity = $4,000,000

3.Current Assets = Total Assets – Plant and Equipment  = 4,000,000-3,000,000  = $1,000,000

4.Current Liabilities = Total Liabilities – Long term debt = 1,500,000 – 950,000  = $550000

5.Accounts payables and accruals = current liabilities – notes payables

= 550,000  – 150,000  = $400,000

7 0
3 years ago
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