Question: Most Solutions, Inc., issued 13% bonds, dated January 1, with a face amount of $720 million on January 1, 2018. The bonds mature in 2028

Most Solutions, Inc., issued 13% bonds, dated January 1, with a face amount of $720 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 15%. 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, 2018 Cash (price) Discount on bonds (difference) 637,413,120 82,586,880 Bonds payable (face amount) 720,000,000 Required: What would be the amount(s) related to the bonds that Most Solutions would report in its statement of cash flows for the year ended December 31, 2018? (List any cash outflow with a minus sign. Enter your answers in whole dollars.) $637,413,120 Cash inflow from financing activities Cash outflow from operating activities
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
