On January 1, year 1, Jerry Corp issued $100,000 par value, 5% five-year bonds when the market rate of interest was 8%. Interest is payable annually on December 31. Bonds mature in 5 years. The following present value information is available: 5% 8% Present value of $1 (n=5) 0.78353 0.68058 Present value of a ordinary annuity (n=5) 4.32948 3.99271 What amount is the value of net bonds payable at the end of year 1?  

A comparative balance sheet for Cary Corporation is presented below. Assets 2020   2019   Cash 62,800 48,700 Accounts receivable 87,600 79,300 Inventory 157,500 138,200 Land 60,500 80,400 Equipment 362,700 312,000 Accumulated depreciation–equipment (84,500) (26,400)             Total 646,600 632,200 Liabilities and Stockholders’ Equity Accounts payable 48,200 97,300 Bonds payable 154,000 189,000 Common stock ($1 par) 175,000 175,000 Retained earnings 269,400 170,900             Total 646,600 632,200 Additional information: Net income for 2020 was $157,400; there were no gains or losses. Cash dividends of $58,900 were declared and paid. Bonds payable of $35,000 were retired. Compute each of the following: (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000). Round to the nearest dollar. Do NOT put a dollar sign ($) in your answer.) 1. Net cash provided by operating activities                   $ 2. Net cash provided (used) by investing activities         $ 3. Net cash provided (used) by financing activities         $  

In determining present value, a company moves backward in time using a process of accumulation.

A comparative balance sheet for Cary Corporation is presented below. Assets 2020   2019 Cash 88,400 28,600 Accounts receivable 106,600 85,800 Inventory 221,000 245,700 Land 92,300 143,000 Equipment 364,000 260,000 Accumulated depreciation–equipment (96,200) (54,600)             Total 776,100 708,500 Liabilities and Stockholders’ Equity Accounts payable 44,200 61,100 Bonds payable 195,000 260,000 Common stock ($1 par) 213,200 213,200 Retained earnings 323,700 174,200             Total 776,100 708,500 Additional information: Net income for 2020 was $201,500; there were no gains or losses. Cash dividends of $52,000 were declared and paid. Bonds payable of $65,000 were retired. Compute each of the following: (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000). Round to the nearest dollar. Do NOT put a dollar sign ($) in your answer.) 1. Net cash provided by operating activities                   $ 2. Net cash provided (used) by investing activities         $ 3. Net cash provided (used) by financing activities         $  

On January 1, 2020, Stardew Company sold to Lewis Company $920,000 of its 9% bonds for $814,472 to yield 11%. Interest is payable semiannually on January 1 and July 1. What amount should Stardew report as interest expense for the six months ended June 30, 2020?  

The following information pertains to Arrow Corp.’s issuance of bonds on July 1, 20X5: Face amount $1,100,000 Term 6 years Stated interest rate 6% Interest payment dates Annually on July 1 Yield 8% At 6% At 8% Present value of $1 for 6 periods 0.705 0.63 Future value of $1 for 6 periods 1.419 2.587 Present value of ordinary annuity of $1 for 6 periods 4.917 4.623 What should be the issue price for each $2,000 bond (550 individual bonds comprise the entire bond issue)?  

If two annuities have the same number of rents with the same dollar amount, but one is an annuity due and one is an ordinary annuity, the future value of the annuity due will be greater than the future value of the ordinary annuity.

Jordan Company requires a new manufacturing facility. It found three locations; all of which would provide the needed capacity, the only difference is the price. Location A may be purchased for $405,000. Location B may be acquired with a down payment of $95,000 and annual payments at the end of each of the next eighteen years of $45,900. Location C requires $47,010 payments at the beginning of each of the next twenty-four years. Assuming Jordan’s borrowing costs are 12% per annum, which option is the least costly to the company?

In preparing a statement of cash flows, cash flows from operating activities

A forklift costing $45,100 was purchase on April 1st of 2020. The forklift has a salvage value of $8,050 and an estimated life of 8 years and is depreciated using the straight-line method. On December 31, 2022, before adjusting entries are made the estimated total useful life is revised to 5 years with no change in the salvage value. The depreciation expense for 2022 would be (Round intermediate calculations and final answer to 2 decimal places, e.g. 52.75.)