Please question #4 of P9.26.Calculate the resulting gain or loss. What is the impact of the gain or loss on Bonds payable, Bond discount and Cash? Where will the gain/loss be reported n the company's statement of cash flows? , What is the balance sheet value of the lease asset and the lease liability?2 Why was the lease categorized as a finance lease?3 How much is interest expense in the first year?* What is the reduction in the lease liability in the first year?* What is the total expense if straight-line amortization is used for the leased asset?PROBLEMSO 26 Debt Valuation: Interest-Bearing Debentures, At the beginning of the year, Marshall Square, Inc. issued$100 million (maturity value) of 20-year debentures. The debentures carry a 4.75 percent annual coupon rate(compounded semi-annually) and interest payments are made semi-annually. The market rate of interest at thetime the debentures were issued was 5 percent.Required1. Calculate the proceeds received by Marshall Square when the bonds were sold.2. Explain why the Marshall Square bonds were sold at a discount.3. Calculate the market value of the bonds if, after five years, the market yield rate is four percent per period(i.e., 8% annually).4. Calculate the cost of retiring the Marshall Square bonds after 15 years assuming that the market yield rateis three percent per period (six percent annually) at the time of retirement. Calculate the resulting gain orloss. Where will the gain/loss be reported on the company's statement of cash flows?Debt Valuation: Zero-Coupon Debentures. At the beginning of the year, Park Inc. issued $150 million(maturity value) of 10-year, zero-coupon debentures, at a time when the yield rate was four percent annually.The Park, Inc. bonds would be subject to semiannual compounding.RequiredCaleulata tha nroceeds to be received by Park Inc. when the bonds are sold.that the

A debenture pays a regular interest rate or coupon rate return to investors

, What is the balance sheet value of the lease asset and the lease liability? 2 Why was the lease categorized as a finance lease? 1 How much is interest expense in the first year? 1 What is the reduction in the lease liability in the first year? s What is the total expense if straight-line amortization is used for the leased asset?

, What is the balance sheet value of the lease asset and the lease liability? 2 Why was the lease categorized as a finance lease? 1 How much is interest expense in the first year? 1 What is the reduction in the lease liability in the first year? s What is the total expense if straight-line amortization is used for the leased asset?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assuming Sherban reports dividends paid as a financing activity: Calculate net cash flow from operating activities. Use a proper three-line title. Calculate Sherban’s current cash debt coverage ratio, cash debt coverage ratio and free cash flow. Using your answers in part (b) and comment on Sherban’s liquidity and financial flexibility. Under IFRS, how else might Sherban account for cash dividends paid in the cash flow statement?
41 . Which of the following would not be a cash flow from financing activities? Multiple Choice Borrowing on a long-term note payable Payment of interest on bonds payable Repayment of principal on bonds payable Payment of a cash dividend
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What sorts of questions about future cash flows do investors and creditors ask using the income statement?
5. In what section of the statement of cash flows is the repayment (retirement) of bonds payable reported? Noncash activities note Operating Activities Investing Activities Financing Activities
How can changes in working capital items, such as accounts receivable and inventory, affect the cash flow statement, and how can these changes be interpreted by investors and creditors?
Which of the following is included in the cash flows from financing activities section of the statement of cash flows? Multiple Choice Purchase of investments. Interest expense. Purchase of treasury stock. Sale of equipment. Interest revenue.
Investors and creditors use the income statement to address what types of queries regarding future cash flows?
Which section of the statement of cash flows shows cash inflows and outflows from the issue and repayment of loans? A. Fiancing B. Operating C. Investing D. None of the Above
2. a. In what section of the statement of cash flows would a Gain be reported when the indirect method is used? Noncash activities note Investing Activities Financing Activities Operating Activitiesb. In what section of the statement of cash flows is the purchase of treasury stock reported? Investing Activities Operating Activities Noncash activities note Financing Activities
6.On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the present value of future cash flows. b.the amount expected to be paid if the company could honor its debts. c.net realizable value. d.the amount required for settlement. e.replacement cost.
On the statement of cash flows, the investing activities section would include a. cash paid for dividends Ob. cash paid for retirement of bonds payable Oc. cash received from the issuance of capital stock Od. cash received from the sale of investments