Question

Most Solutions, Inc., issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 13%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2018 Cash (price) Discount on bonds (difference) 708,236, 800 91,763,200 Bonds payable (face amount) 800,000,000 Required What would be the amount(s) related to the bonds that Most Solutions would report in its statement of cash flows for the year ended December 31, 2018? (List any cash outflow with a minus sign. Enter your answers in whole dollars.) Answer is not complete. Cash inflow from financing activities Cash outflow from operating activities

Answer 1

Cash inflow from financing activities	$708,236,800.00
Cash outflow from operating activities ( 800,000,000*11%)	-$88,000,000.00