16. Use the following information for apple Inc. to answer the next question.

apple Inc. Return on Assets-2019: 10%; 2018: 8%

2018 Industry Average- 2019: 9%; 2018: 8%

apple Incs Return on Assets

1. Is not improving as rapidly as its competitors in the use of its assets.
2. Indicated that it earned $0.10 in Net income per $1 in Asset during 2019
3. Did not improver from 2018 to 2019
4. Uses its assets less efficiently and effectively than competitors in its industry in2019

On January 1, 2020, Elm Co. issued $200,000, 4%, 10-year bonds at 92.25, when the market rate of interest was 5%. Interest is payable semiannually, on 1/1 and 7/1. What does Elm Company report on their 2020 income statement, as interest expense related to these bonds, and what is the cash received by the bondholders for 2020?

a. Int Exp= $4775, Cash Rec= $4000

b. Int Exp= $8000, Cash Rec= $4000

c. Int Exp= $9550, Cash Rec= $8000

d. Int Exp= $9550, Cash Rec= $4000

e. Int Exp= $8000, Cash Rec= $8000