1. What is the effect to the balance sheet of MNO company when their convertible bondholders choose to convert their bonds to common stock? Assume bondholders are required to turn in their bonds and pay S5 per share to receive common stock. Answered as a paragraph.

2. ABC company is determining whether to purchase 40% or 60% of XUZ company. What is the difference in financial statement reporting requirements between these two purchase options? Answered as a paragraph.

3.

ABC company reported the following schedule of maturities for long term debt. 2018 $595,000,000 2019 $1,155,000.000 2020 $750.000,000 2021 $700.000,000 What makes this schedule useful in analyzing the financial condition of ABC company