Salesforce offered as an investment a 20 year $50,000,000 bond with a 6% contract rate of interest to the public on December 1, 2020. However, the market was 10% and investors thought the bond prices would have to be adjusted to reflect reality in the market place. So you have been hired by Salesforce to provide advice and information as to the impact on the rise in interest rates would have on Salesforce's cash flow projections. 1. What would Salesforce's cash proceeds be if the bonds were issued? Assume all of the bonds were sold and interest is paid semi-annually? Show work and provide the initial journal entry that would have to be recorded. 2. How much interest would Salesforce have to pay every six months? 3. How much interest would Salesforce have to pay every year? 4. How much interest would Salesforce have to pay in cash for the entire period of the loan? 5. What would be the yearly interest charged to Salesforce's income statement pursuant to this bond offering? Please show all work. 6. If Salesforce's bond were sold @ 97 what dollar amount of cash would Salesforce received after the bonds were sold - excluding investment broker's fees? 7. If Salesforce were to wait until 2021 to issue its bond offering, when the market interest might be lower such a projected 4%, then what might be the new cash proceeds? Show Work on this one. B. Expanding on question 7, what most likely would be Salesforce's yearly interest expense incurred? 9. What impact does the amortization of the discount amount each year have on Salesforce's preparation of its cash funds flow from operations portion of Salesforce's Statement of Cash Funds Flow? Salesforce offered as an investment a 20 year $50,000,000 bond with a 6% contract rate of interest to the public on December 1, 2020. However, the market was 10% and investors thought the bond prices would have to be adjusted to reflect reality in the market place. So you have been hired by Salesforce to provide advice and information as to the impact on the rise in interest rates would have on Salesforce's cash flow projections. 1. What would Salesforce's cash proceeds be if the bonds were issued? Assume all of the bonds were sold and interest is paid semi-annually? Show work and provide the initial journal entry that would have to be recorded. 2. How much interest would Salesforce have to pay every six months? 3. How much interest would Salesforce have to pay every year? 4. How much interest would Salesforce have to pay in cash for the entire period of the loan? 5. What would be the yearly interest charged to Salesforce's income statement pursuant to this bond offering? Please show all work. 6. If Salesforce's bond were sold @ 97 what dollar amount of cash would Salesforce received after the bonds were sold - excluding investment broker's fees? 7. If Salesforce were to wait until 2021 to issue its bond offering, when the market interest might be lower such a projected 4%, then what might be the new cash proceeds? Show Work on this one. B. Expanding on question 7, what most likely would be Salesforce's yearly interest expense incurred? 9. What impact does the amortization of the discount amount each year have on Salesforce's preparation of its cash funds flow from operations portion of Salesforce's Statement of Cash Funds Flow