+1(805) 568 7317

bond premiums and discounts on the cash flow statement the company has bonds outstan 692420

Bond Premiums and Discounts on the Cash Flow Statement

The company has bonds outstanding with a face value of $50,000 and an unamortized premium of $2,350 at the beginning of the year and $2,000 as of the end of the year. Sales (all for cash) were $42,000 for the year. Total interest expense of $4,650 was reported for the year. Because interest expense is the only expense for this company, net income for the year was $37,350 ($42,000 $4,650). Prepare the Operating Activities section of the cash flow statement using both (1) the direct method and (2) the indirect method.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon

Order Now