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The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%.

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The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. Frenza Bond Amortization Carrying Value Unamortized Discount $100,000 $80,000 $60,000 $88,000 $90,000 $92,000 $94,000 $96,000 $98,000 $100,000 $40,000 $20,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 1 $0 Year 2 Year 3 Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 1096 (Frenza 9% 896 $50,000 Lika 7% 696 $40,000 496 $4% Nelo... $30,000 $55,000 29 $20,000 $30,000 $32,000 $42,000 Cash $18,000 $7,000 096 $10,000 $0 Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Total Equity $400,000 $530,000 $275,000 Cash Cash Inventory Inventory Inventory Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Required 3 Frenza needs to raise money to purchase new equipment. The founder is concerned about losing ownership control of her company. Which of the following ways to raise money would we recommend? (Select all that apply.) L Issue bonds Issue a note to a bank Issue common stock Reissuing treasury stock Required 1A Required 1B Required 10 Required 2 Required 3 Frenza needs to raise money to purchase more inventory. The founder is concerned about the company's ability to make required cash payments when cash flows are low. Which of the following ways to raise money would we recommend? (Select all that apply.) Issue bonds Issue a note to a bank Issue common stock Issue preferred stock

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