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Zarrin [17]
3 years ago
6

Norton Corporation received cash from issuing 10-year $200,000 bonds at face value. Interest of $10,000 is paid annually to the

bondholders on December 31. How do the issuance of the bonds and the payment of the interest affect Norton's financing activities section of the statement of cash flows for
Business
1 answer:
Jobisdone [24]3 years ago
5 0

Answer:

Issuance of bonds is a cash inflow

Payment of interest is a cash outflow

Explanation:

The issue of the bond at $200,000 face value would be a cash inflow under the financing activities of the cash flow when issued since more cash was received from the bondholders.

However,the payment of bond interest of $10,000 yearly is a cash outflow under the financing activities section of the statement of cash flows,since Norton Corporation would be parting with the amount on yearly basis till the bonds are retired.

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Denise will receive annual payments of $10,000 for the next 25 years. The discount rate is 6.8 percent. What is the difference i
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Answer: $8,069.29

Explanation:

If it is paid at the beginning of the year, it accumulates an extra year of interest and would be an Annuity Due.

If it is paid at the end, it is an ordinary annuity.

Present value of annuity due = Annuity * Present value interest factor of Annuity due, 6.8%, 25 periods

= 10,000 * 12.673521

= $126,735.21

Present value of annuity = Annuity * Present value interest factor of annuity, 6.8%, 25 periods

= 10,000 * 11.866592

= $118,665.92

Difference :

= 126,735.21 - 118,665.92

= $8,069.29

4 0
3 years ago
In 2004, Jamal lost his job as a shipbuilder. His shipyard never reopened, and his very specialized skills as a shipbuilder were
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The best way to describe Jamal's unemployment would be <u>Structural</u>

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3 years ago
Problems with (or leakages from) the money creation process would include an increase in the reserve requirement. unwillingness
mart [117]

Answer:

The correct answer is unwillingness of borrowers to obtain loans from banks to invest in factories or expansion of the firm.

Explanation:

Solution

<em>Given that:</em>

Leakage problem occurs or happens within an economy when the money goes out of the economy, which leads to a loss in the economic value of goods and services, and also leads to loss in profits making.

This would lead to an unwillingness of borrower's to obtain loans from banks in the expansion of the firm or to invest in factories.

4 0
3 years ago
If we wanted to most closely apply the principle of popular sovereignty to control of the bureaucracy, which of the following of
Fofino [41]

Answer:

The correct answer is The president.

Explanation:

Bureaucracy is the organization or structure that is characterized by centralized and decentralized procedures, division of responsibilities, specialization of work, hierarchy and impersonal relations.1 The term is used in sociology, administrative science and, especially, in the public administration. It could be defined as a set of techniques or methodologies arranged to learn or rationalize the external reality (to which it intends to control the central power) in order to know and call it in a standardized or uniform way.2 A clear example of this characteristic of bureaucracies , particularly those of government, is the hiring and assignment or removal of personnel, that is, officials, according to explicit criteria and relevant to the performance of duties.

7 0
3 years ago
When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating c
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Answer:

C. Proceeds from the disposal of a long-term asset with no gain or loss.

Explanation:

Operating activities: it involves those transactions that after net income written impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.  

It would adjust the changes in working capital. In addition, the depreciation expense adds to the net revenue. And the loss on asset sales is added, while the gain on asset sales is deducted

8 0
4 years ago
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