Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $520 million on January 1, 2021. The bonds mature in
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $520 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. 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, 2021 Cash (price) Discount on bonds (difference) Bonds payable (face amount) 464,911,512 55,088,488 520,000,000 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, 2021? (List any cash outflow with a minus sign. Enter your answers in whole dollars.) > Answer is complete but not entirely correct. Cash inflow from investing activities Cash outflow from operating activities $ 62,400,000 $ (62,400,000) Cash inflow from financing activities $ 464,911,512
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started