Business
Business, 25.05.2021 01:00, MeTooFoodYum

Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2021
Cash (price) 375,505,452
Discount on bonds (difference) 44,494,548
Bonds payable (face amount) 420,000,000
Required:
What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021? (List any cash outflow with a minus sign. Enter your answers in whole dollars.)

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Answers: 3

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Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on Janua...

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