Secured bonds PARTI - MATCHING (40 points) Muchach of the following terms with the appropriate definitions / through 10 1. The net amount at which bonds are reported on the lance sheet Debt to equity ratio Carrying value 2. The ratio of total liabilities to total equity 3. Bonds that have specific assets of the issuer pledged as collateral Sinking fund bonds 4. A written promise to pay an amount identified as the par value along with interest at a stated rate Bond indenture 5. A series of equal payments at equal intervals Annuity 6. The interest rate specified in the bond indenture 7. Bonds that give the issuer an option of retiring them at a stated amount before the date of maturity Premium on bonds 8. The contract between the bond issuer and the bondholder(s); it identifies the rights and obligations of the parties Bond 9. Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity. Contract rate 10 The difference between the par value of a bond and its higher issue price or carrying value. Callable bonds PART 2 - STATEMENT OF CASH FLOWS (72 Points) 11. Use the financial statements shown on the year ended through 10 Secured bonds PARTI MATCHING (0 ) Match cach of the following terms with the appropriate definitions 1. The amount at which bonds are reported on the Debt to ce sheet equity ratio Carrying value 2. The ratio of a kilities to total quity 3. Bonds that have specifie assets of the issuer pledged as collateral 4. A w e promise to pay an amount identified as the par along with interest at a stated rate Sinking fund bonds Bond indenture Annuity SA series of equal payments at equal intervals The interest rate specified in the bond indenture 7. Bonds that give the issuer an option of retiring them at a stated amount before the date of maturity Premium on bonds 8. The contract between the bond issuer and the bondholders) it identifies the rights and obligations of the parties Bond 9. Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity. Contract rate 10 The difference between the par value of a bond and its higher issue price or carrying value. Callable bonds PART 2 - STATEMENT OF CASH FLOWS (72 Points) 11. Use the financial statements shown on page 10 to prepare a statement of cash flows (indirect method) the year ended December 31, 2019. Present your work in the space provided on the next page. In additio the information presented in the financial statements, you will also find the following information to be helpful: a. $38,000 was paid during 2019 to retire a long-term note payable. b. Dividends in the amount of $35,700 were paid during 2019 c. New equipment was acquired in 2019 for $43,815 cash. d. Received $12,900 cash for equipment sold during 2019. e. Issued common stock during 2019 for $20,000 cash