Use the Following to Answer Questions

question 53

Essay

Use the following to answer questions
The note about debt included in the financial statements of Healdsburg Company for the year ended December 31,2015 disclosed the following:
Debt.The following table summarizes the long-term debt of the Company at December 31,2015.All of the notes were issued at their face (maturity)value.
Required: Assuming that the notes pay interest annually and mature on December 31 of the respective years,compute the following:
-Suppose that Healdsburg wants to buy back the 7.75% notes on December 31,2016, (i.e. ,five years early)when the going interest rate is 6%,thereby retiring the $345,154,000 in debt.How much would Healdsburg have to pay for the notes (principal only)?

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Definitions:

Owner Withdrew

A transaction where the business owner takes out funds from the business for personal use, often recorded as a reduction in owner's equity.

Cash

Physical money such as coins and banknotes, or a resource in bank accounts that is available for immediate withdrawal and use for payments.

Withdrawals

Money or other assets taken out of a business by its owner(s) for personal use.

Financial Position

refers to the status of the assets, liabilities, and equity of an entity at a particular point in time, as represented primarily through the balance sheet.