Analisis financiero

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ESTE DOC UMEN TO E STA PROTEGIDO POR LA LE Y DE DERE C HOS DE A UTOR (TITULO 107, C OD I GO DE L OS ESTADO S UNIDOS )

CHAPTER 14 LONG TERM LIABILITIES: BONDS AND NOTES
EYE OPENERS
1. (1) To pay the face (maturity) amount of the bonds at a specified date. (2) To pay periodic interest at a specified percentage of the face amount. 2. a. Bonds that may be exchanged for other securities underspecified conditions. b. The issuing corporation reserves the right to redeem the bonds before the maturity date. c. Bonds issued on the basis of the general credit of the corporation. 3. Less than face amount. Because comparable investments in bonds provide a market interest rate (11%) that is greater than the rate on the bond being purchased (10%), the bond will sell at a discount as the market’smeans of equalizing the two interest rates. 4. a. Greater than $9,000,000 b. 1. $9,000,000 2. 7% 3. 9% 4. $9,000,000 5. Less than the contract rate 6. a. Premium b. $12,085,373 c. Premium on Bonds Payable 7. a. Debit Interest Expense Credit Discount on Bonds Payable b. Debit Premium on Bonds Payable Credit Interest Expense 8. No. A bond discount occurs when the contract rate of interest on a bondis lower than the market rate of interest. As a result, buyers are not willing to pay full face amount for the bonds. The discount may be viewed as the amount needed to entice investors to accept a contract rate of interest that is below the market rate. The discount is initially recorded on the balance sheet as a deduction from bonds payable. 9. The bond issue that is callable is more risky forinvestors, because the company may redeem (call) the bond issue if interest rates fall. In addition, since the bonds may be called at their face amount, they will sell for a lower value than the noncallable bond issue. 10. A loss of $30,000 [($1,000,000 × 0.98) – ($1,000,000 – $50,000)] 11. A mortgage note is an installment note that is secured by a pledge of the borrower’s assets. In other words,if the borrower fails to pay the note, the lender has the right to take possession of the pledged asset and sell it to pay off the debt. 12. A bond is an interest-bearing note that requires periodic interest payments and repayment of the face amount of the bonds at maturity. Thus, bonds consist of two different components: (1) interest payments made periodically over the life of the bond and (2)the face amount that must be repaid at maturity. Therefore, the periodic payments consist entirely of interest, and the final payment at maturity consists entirely of principal. Installment notes, on the other hand, have periodic payments that consist partially of interest, and partially of principal. Each payment reduces the principal on the note so that at maturity the entire amount borrowed willhave been repaid. 13. a. As a current liability b. As a long-term liability 14. As an addition to the related bonds payable 15. The phrase “time value of money” means that an amount of cash to be received today is worth more than the same amount of cash to be received in the future. This is because cash on hand today can be invested to earn income. 16. (b) $10,000 to be received at the end ofeach of the next two years has the higher present value because cash that is received earlier can be invested to earn income.

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PRACTICE EXERCISES PE 14–1A
Plan 1 Earnings before bond interest and income tax ............... Bond interest ...................................................................... Balance............................................................................... Income tax .......................................................................... Net income .......................................................................... Dividends on preferred stock ............................................ Earnings available for common stock .............................. Number of common shares ............................................... Earnings...
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