15.On January 1, 2014 bonds with a face value of $1,000,000 were sold. The bonds mature on January 1, 2024. The stated rate of interest is 12% annually. The bond pay interest semiannually on July and January 1. The market rate of interest is 10%. What was the selling price of the bonds?

A.$1,133,270.

B.$1,124,623.

C.$1,872,360.

D.$1,122,890.

E.$737,348

F.$885,301

G.None of the above.

(20 Points) EXERCISE SECTION

Prepare Nyman's statement of cash flows and free cash flow

Nyman Travel Products, Inc.

Income Statement

Year Ended December 31, 2016

Revenues:

Service revenue $234,000

Dividend revenue 8,300 $242,300

Expenses:

Cost of goods sold 103,000

Salary expense 62,000

Depreciation expense 21,000

Amortization 12,000

Advertising expense 4,300

Interest expense 2,100

Income tax expense 8,000 212,400

Net income $29,900

Nyman Travel Products, Inc.

Balance Sheet

December 31,

2016 2015

Current assets:

Cash ? $68,000

Accounts receivable 42,000 56,000

Inventory 48,000 61,000

Prepaid expenses 9,600 8,700

Current liabilities:

Accounts payable $38,000 $25,000

Accrued liabilities 99,000 82,000

Additional data:

a) Acquisition of plant assets was $134,000 of this amount $ 90,000 was paid in cash and $ 44,000 by signing a note payable.

b) Proceeds from sale of land totaled $34,000.

c) Proceeds from issuance of common stock totaled $60,000.

d) Payment of long-term note payable was $14,000.

e) Payment of dividends was $12,000.

f) Acquisition of land by issuing long-term note payable $199,000

g) Gain on sale of equipment $8,000

h) Retirement of bonds payable by issuing common stock $62,000

i) Purchase of treasury stock $14,500