Question: Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2021. The bonds mature in 2031

Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 12%. 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)... Discount on bonds (difference) Bonds payable (face

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?

January 1, 2021 Cash (price)... Discount on bonds (difference) Bonds payable (face amount) 566,589,440 73,410,560 640,000,000

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