9- An owner puts 500.000 TL of cash to set up his/her company at the beginning of the year. Then the following transactions occur during the year:

- (1) The company immediately invests in a government bond for the purpose of holding it until maturity. The bond has a 100.000 TL par value, 10% annual coupon rate, 5 year maturity. Coupons are paid annually. Market yield is 12%.

- (2) The company deposits 300.000 TL in a bank.

- (3) The company purchases inventory at a price of 50.000 TL. 10.000 TL is paid in cash, 27.000 TL is paid by the companys own checks, and remainder is paid on credit.

- (4) The company sells the entire inventory at a price of 60.000 TL to be paid half by credit and half by checks (Assume that the company employs perpetual inventory system).

- (5) The company decided to pay its payables in (3) by checks received in (4).

- (6) The seller in (3) cashes the check from the bank.

- (7) The company received coupon payments from the bonds invested in (1). Using the above information, you construct the closing balance sheet and find that the total use of cash and cash equivalents during the year is

a) 102.790,45 TL b) 21.134,85 TL c) 397.209,55 TL d) 123.925,30 TL

10- Refer to Question 9 above. Suppose that the company decides to issue a bond to the capital market investors. The bond has the following features: 10 year maturity, 5% coupon rate, annual coupon payments, 20.000 TL par value. The market yield is 6%. What would be the total assets after the issuance?

a) 521.134,85 TL b) 539.662,84 TL c) 547.209,55 TL d) 415.737,53 TL