Question
Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $690 million on January 1, 2016. The bonds mature in 2026
Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $690 million on January 1, 2016. The bonds mature in 2026 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: |
January 1, 2016 | ||
Cash (price) | 610,854,240 | |
Discount on bonds (difference) | 79,145,760 | |
Bonds payable (face amount) | 690,000,000 |
Required: |
What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2016?(List any cash outflow with a minus sign. Enter your answers in whole dollars.) |
answers should be like cash outflow/inflow from operating/investing/financing activities |
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