Kier Company issued $600,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 5-year term to maturity. The bonds have a 6.00% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1

interest expense = $36,000

cash flows from operating activities = - $36,000

Explanation:

issued $600,000 in 6% bonds, with a 5 year maturity with an annual coupon paid December 31.

since bonds were issued at face value, interest expense = face value x bonds payable = 6% x $600,000 = $36,000

cash flows from operating activities related to this operation = -$36,000

interest expense is part of operating activities, so they decrease the cash flow from operating activities.

simpleton is the answer, this is simpleton work

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.