Digital Telephony issued $\backslash (10\backslash \%\backslash )$ bonds, dated January $1,$ with a face amount of $\backslash (\backslash$$ $37\backslash )$ million on January $1,2024.$ The bonds mature in $2034(10$ years$).$ For bonds of similar risk and maturity the market yield is $\backslash (12\backslash \%\backslash ).$ Interest is paid semiannually on June $30$ and December $31.$ Digital recorded the issue as follows:

Note: Use appropriate factor$($s$)$ from the tables provided. $($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ PVA of $\backslash$$$1,$ FVAD of $\backslash$$$1$ and PVAD of $\backslash$$$1)$

Digital also leased switching equipment to Midsouth Communications, Incorporated on September $30,2024.$ Digital purchased the equipment from MDS Corporation at a cost of $\backslash (\backslash$$ $11\backslash )$ million. The five$-$year lease agreement calls for Midsouth to make quarterly lease payments of $\backslash (\backslash$$ $717,837\backslash ),$ payable each September $30,$ December $31,$ March $31,$ and June $30,$ with the first payment on September $30,2024.$ Digital's implicit interest rate is $\backslash (12\backslash \%\backslash ).$

Required:

$1.$ What would be the amount$($s$)$ related to the bonds that Digital would report in its statement of cash flows for the year ended December $31,2024,$ under the direct method?

$2.$ What would be the amounts related to the lease that Midsouth would report in its statement of cash flows for the year ended December $31,2024,$ under the direct method?

$3.$ What would be the amounts related to the lease that Digital would report in its statement of cash flows for the year ended December $31,2024,$ under the direct method?

$4.$ Assume MDS manufactured the equipment at a cost of $\backslash (\backslash$$ $10\backslash )$ million and that Midsouth leased the equipment directly from MDS$.$ What would be the amounts related to the lease that MDS would report in its statement of cash flows for the year ended December $31,2024?$

Note: Do not round intermediate calculations. Enter your answers in whole dollars. List cash outflows as negative amounts.

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What would be the amounts related to the lease that Midsouth would report in its statement of cash flows for the year ended December $31,2024,$ under the direct method?