Question
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July 1, 2016, at a price of $380
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July 1, 2016, at a price of $380 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.
What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2016, if it uses the indirect method? (List any cash outflows with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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