[The Following Information Applies to the Questions Displayed Below

question 44

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Jones Company issued bonds with a $200,000 face value, a stated rate of interest of 7.5%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method.

-What is the amount of cash outflow from operating activities shown on Jones' statement of cash flows for the year ending December 31,Year 2?

• A)$15,000
• B)$16,200
• C)$13,800
• D)$17,400

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Definitions:

Frequency Source

A device or system component that generates a signal of a specific frequency.

Capacitive Reactance

The opposition to the change in voltage across a capacitor, measured in ohms and varying with frequency.

Parallel Connection

An arrangement in electrical circuits where components are connected across common junction points, allowing each component to operate independently of the others.

Frequency Source

An electronic device or system that generates a repetitive signal of a fixed, specified frequency.