Ask Question
BusinessBusiness
23 August, 14:35

Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,700 million on July 1, 2018, at a price of $1,680 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. What would be the amount (s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2018, if it uses the indirect method

+4
Answers (1)
  1. 23 August, 16:14
    0
    Agee Technology, Inc.

    Amounts related to the bonds to report in statement of cash flows for the year ended December 31, 2018:

    1. Receipts from Bonds Issue = $1,680 million

    2. Payment of Interests on Bonds = - $153 million

    Explanation:

    a) The interests are based on based on 9% of $1,700 million, the bonds' face value.

    b) The same amounts will be reported either using the direct method or the indirect method. The indirect method adjusts the net income with non-cash expenses instead of using the direct inflows and outflows from operating activities.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,700 million on July 1, 2018, at a price of $1,680 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If an organization's competitive strategy relies on long-term relationships with the clients who purchase the organization's goods and services, the organization should reward its employees from its executives to its sales staff with incentives
Answers (1)
Which of the following situations is an example of country risk? Group of answer choices Alpha Corp., a rice manufacturer based in Pakistan, suffered losses when the U. S.
Answers (1)
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports.
Answers (1)
Old South Company purchased investments for $55,000 and plant assets for $147,000 during the current year, during which it also sold plant assets for $66,000, at a gain of $6,000.
Answers (1)
The present value of a lump sum future amount: decreases as the time period decreases. is inversely related to the future value. is directly related to the interest rate. increases as the interest rate decreases.
Answers (1)
New Questions in Business
Wages of $8,000 are earned by workers but not paid as of december 31, 2017. depreciation on the company's equipment for 2017 is $18,000. the office supplies account had a $240 debit balance on december 31, 2016.
Answers (1)
You have placed an antique sofa up for auction and the auctioneer has not made any special announcements about the sale. You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.
Answers (1)
2. Provide a definition for the following terms: • Accounts receivable: Enter definition here. • Supplies: Enter definition here. • Prepaid rent: Enter definition here. • Furniture: Enter definition here.
Answers (1)
What is the term applied to the amount that net sales exceeds cost of goods sold on an income statement?
Answers (1)
Whenever marginal cost is greater than average total cost, A. average total cost is rising. B. marginal cost is falling. C. average total cost is falling. D. Both b and c are correct.
Answers (1)
Home » Business » Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,700 million on July 1, 2018, at a price of $1,680 million. For bonds of similar risk and maturity, the market yield is 10%.
Sign Up Forgot Password?