Q20. The Bagel Company has a Current Ratio of 0.8 at the end of the current year. Which of the following could the management have done on the last day of the year to make the Current Ratio higher?*

a. Increase bad debt expense

b. Collect some additional cash from accounts receivable

c. Purchase additional inventory and borrow from the bank a long-term loan (assume the entire long-term loan is under long-term liabilities)

d. Pay off some accounts payable

e. None of the above is correct

Q21. In 2020, Bank of America paid dividends of $850 million and bought buildings for $800 million. In the statement of cash flows for 2020, the total effect on the cash flows from financing activities is:*

a. A negative cash flow amount of $50 million

b. A negative cash flow amount of $1,650 million

c. A positive cash flow amount of $850 million

d. GAAP states that a firm cannot pay dividends and buys buildings in the same year

e. None of the above is correct

Q22. Sun Corporation acquired a new office machine on 1/1/2008, for $240,000. The machine has a 20-year life and a $20,000 estimated salvage value. The firm uses the sum-of-the-years'-digits method to depreciate the asset. What is the Accumulated Depreciation amount that appears on the balance sheet of Sun Corporation as of 12/31/2010?*

a. $20,952

b. $40,857

c. $59,714

d. $18,857

e. None of the above is correct

Q24. On 7/1/Year1, the Ish-U-Bonds Company issued bonds with a face amount of $1,000,000 due in 20 years. Coupons are paid semi-annually on December 31 and July 1, beginning 12/31/ Year1. The annual coupon rate is 8%, and the annual market yield on the issuance day is 6%. What are the bonds issuance proceeds?*

a. There are missing parameters to solve this question

b. $1,123,151

c. $306,560

d. $1,191,917

e. None of the above is correct