32, Fisher Company is about to issue $200,000 of 5-year bonds with a interest ra

Question

32, Fisher Company is about to issue $200,000 of 5-year bonds with a interest rate of 5% payable semi-annually The effective (market) rate for such securities is 6%. How much can Fisher expect to receive from the sale of these bonds? a. $243,761 b. $200,000 c. 191,576 d. $191,469 33. Columbia Footwear had Accounts payable of 230,000 at the beginning year and $310,000 at the end of the year. During the year Columbia made purchases of inventory on account of $723,000. What is the amount of cash paid to suppliers? a. $743,000 b. $723,000 c. $703,000 d. $20,000

Explanation / Answer

32 Amount PV factor Present value Semi-annual interest 5000 8.53020 42651 Principal 200000 0.74409 148818 Issue price 191469 Option D is correct 33 Cash paid to suppliers = 723000+230000-310000= 643000 Cash paid to suppliers will be $643000. Please re-check the options as the correct answer is not provided in options

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.