Solution
Robert answered on
Dec 20 2021
Solution E10-5
CASE A:
$500,000 x 0.6730
$ 336,500
$15,000 x 16.3514
245,271
Issue price (market rate less than stated rate)
$581,771
(at a premium)
CASE B:
$500,000 x 0.5537
$ 276,850
$15,000 x 14.8775
223,163
Issue price (market rate and stated rate same)
$500,013
(at par, $13
CASE C:
rounding e
or)
$500,000 x 0.4564
$ 228,200
$15,000 x 13.5903
203,855
Issue price (market rate more than stated rate)
$ 432,055
(at a discount)
Solution E 1-14
LAH MANUFACTURING CORPORATION
Statement of Cash Flows For the Year Ended December 31, 2011
Cash flow from operating activities
Cash collections from sales
$270,000
Cash paid for operating expenses
($175,000)
Net cash flow from operating activities
$95,000
Cash flow from investing activities
Sale of land
25,000
Purchase of new machines
(48,000)
Net cash flow from investing activities
($23,000)
Cash flow from financing activities
Sale of capital stock
$30,000
Payment of long term notes
($80,000)
Payment of cash dividends
($18,000)
Net cash flow from financing...