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Artemon [7]
2 years ago
15

anta Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and in

terest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 10 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 $901 December 31, Year 1 $60 $90 $30 931 December 31, Year 2 60 93 33 964 December 31, Year 3 60 96 36 1,000 Required: 1. What was the bond's issue price
Business
1 answer:
monitta2 years ago
7 0

Answer:

$901

Explanation:

The bond issue price is the item shown on the amortization schedule which is $901 in this case.

However, we could recompute the bond price using a financial calculator bearing in mind that the financial calculator would be set to its default end mode before making the following inputs:

N=3(number of annual coupons in 3 years)

PMT=60(annual coupon=face value*coupon rate=$1000*6%=$60)

I/Y=10(annual market rate of interest for the bond is 10%)

FV=1000(the face value is  $1000)

CPT

PV=$900.53(closest to $901 when rounded to the nearest whole dollar amount)

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The following events occurred last year for the Bronze Company: Purchase of treasury stock $50,000 Issuance of common stock 90,0
Lana71 [14]

Answer:

Net Cash Flow from Financing Activities                    $150,000

Explanation:

Data provided in the question:

Purchase of treasury stock = $50,000

Issuance of common stock = 90,000

Payment of dividends to common stockholders = 10,000

Sale of equipment = 17,000

Now,

Net cash flow from financing activities will be

Issuance of common stock                                         $90,000

Purchase of treasury stock                                          $50,000

Payment of dividends to common stockholders       $10,000

==============================================================

Net Cash Flow from Financing Activities                    $150,000

Note: Sales of equipment is not included in financing activity

6 0
2 years ago
8) walter co. and sandburg industries report the following information at december 31: walter sandburg accounts receivable $41,0
True [87]

Walter Co. is a manufacturer because it uses raw materials, and has a stock of merchandise inventory, work-in-progress inventory, and finished goods inventory. The current assets of Walter Co. will be:

Current Assets:

Cash                                                          6,000

Inventories

Raw materials inventory       21,000

Work in progress inventory  40,000

Finished goods inventory      25,000

Merchandise inventory           48,000

Total inventory                                      1,34,000

Other assets

Accounts receivable                               41,000

Prepaid expenses                                     1,000

Current assets                                                               2,22,000

A manufacturing company is a company that takes in raw materials processes the raw materials and then sells the finished goods manufactured in the market. So the current assets section of the balance sheet of Walter Co. is given which will be written on the right side of the balance sheet.

Learn more about manufacturing companies here:

brainly.com/question/14942185

#SPJ4

3 0
1 year ago
Swifty Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product i
Bumek [7]

Answer:

See below

Explanation:

Assembled product

Cost = $24 + $20 = $44

Selling price = $69

Profit = $69 - $44 = $25

Unassembled product

Cost = $24

Selling price = $56

Profit = $56 - $24 = $32

Therefore, Swifty corporation should sell before assembly, the company will be better off by $7

5 0
2 years ago
A company's Office Supplies account shows a beginning balance of $630 and an ending balance of $460. If office supplies expense
nalin [4]

The correct answer is that there was $3,080 worth of office supplies purchased during the period.

In order to answer this question you know that the company started with $630 worth of office supplies and ended the year with $460 worth, or $170 less than they started with. The company used $170 of supplies from inventory, so they needed to purchase another $3,080 in order arrive at the $3,250 that we know was the total expense during the reporting period.

5 0
3 years ago
Drury corporation needs to raise $ 2 comma 300 comma 000. the corporation plans on selling 100 comma 000 shares of $ 23 par valu
ad-work [718]

Net Income before Sale of Shares........................................................$1800000

Additional Income due to sale of shares.............................................$400000

Total Net Income........................................................................................$2200000

Income [email protected]%.........................................................................................($660000)

Net Income After Tax..................................................................................1540000

Total No of Shares.........................................................................................260000

Earning Per Share(Net Income After Tax/No of Shares)......................$5.92

8 0
2 years ago
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