Question
Part 1 VanDerMeer Co. issues a bond with principal (face value) of $50,000. The bond was issued at a discount, and the company debits the
Part 1
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VanDerMeer Co. issues a bond with principal (face value) of $50,000. The bond was issued at a discount, and the company debits the bond discount account by $2,000 at issuance date. What is the cash flow associated with the issuance? (Note: inflows are positive and outflows are negative).
Part 2
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Exigent, Inc. repurchases 10,000 shares of common stock at $15 per share. What is the cash flow associated with the repurchase? (Note: inflows are positive and outflows are negative).
Part 3
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The Burratta Co. purchases a warehouse building with a total acquisition cost of $500,000. The company pays $100,000 cash, and signs a note to pay the remaining $400,000 over the next five years. What is the cash flow associated with this purchase? (Note: inflows are positive and outflows are negative)
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