Solve the Problem. -Jancie Has $180,000 to Invest to Obtain Annual Income. She

question 131

Multiple Choice

Solve the problem.
-Jancie has $180,000 to invest to obtain annual income. She wants some of it invested in safe Certificates of Deposit yielding 5%. The rest she wants to invest in AA bonds yielding 12% per year. How much should she
Invest in each to realize exactly $18,100 per year?

• A) $120,000 at 5% and $60,000 at 12%
• B) $130,000 at 5% and $50,000 at 12%
• C) $140,000 at 12% and $40,000 at 5%
• D) $130,000 at 12% and $50,000 at 5%

---

Definitions:

Indirect Method

typically pertains to the calculation of cash flows in a financial statement, where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Accrued Liabilities

Liabilities that have been incurred but not yet paid or recorded in the financial statements.

Indirect Method

A reporting technique used in cash flow statements that adjusts net income for changes in balance sheet accounts to calculate operating cash flow.

Cash Dividends

Payments made by a corporation to its shareholder members, typically derived from the company's profits.