On January 1, Year 1, Victor Company issued bonds with a $850,000 face value, a stated rate of interest of 4%, and a 5-year term to maturity. The bonds sold at 94. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums.What is the amount of cash flow from operating activities on the statement of cash flows for the year ending December 31, Year 3?
A. $44,200
B. $51,000
C. $34,000
D. $31,960
Answer: C
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A holder in due course takes a negotiable instrument free of all:
A. claims in recoupment. B. negotiable defenses. C. claims to the bearer. D. real defenses.
The chief executive officer earns $10,100 per month. As of May 31, her gross pay was $50,500. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7000 of an employee's pay. What is the amount of FICA-Social Security withheld from this employee for the month of June?
A. $7420.47 B. $270.68 C. $626.20 D. $292.90 E. $1252.40
Managers can use BI to answer tough business questions. Which of the following describes the value of knowing where the business is going?
A. Looking at the current business situation allows managers to take effective action to solve issues before they grow out of control. B. Setting strategic direction is critical for planning and creating solid business strategies. C. A historical perspective offers important variables for determining trends and patterns. D. None of these.
Bonds that pay interest tied to the earnings of the company are known as ________ bonds
A) income B) exotic C) floating rate D) variable earnings