The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2017 disclosed the following:
|7.85% notes due 2018||$212,400,000|
|8.35% notes due 2023||$356,200,000|
|8.60% notes due 2032||$237,000,000|
|8.23% notes due 2040||$212,000,000|
|7.15% notes due 2019||$ 26,200,000|
The above table summarizes the long-term debt of the Company at December 31. 2017. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date.
Assuming that the notes pay interest annually and mature on December 31 of the respective years.
Compute the total cash interest payments in 2018 for these notes.
Interest are additional income or payment related to the use of money of others. Common assets that bears interest are cash, loan receivable and notes receivable.
Answer and Explanation:
Total cash interest payments in 2018 for the notes is computed as follows:
|Face Value||X Annual Interest Rate||Total|
|Total interest payments for 2018||$86,119,000|
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from Financial Accounting: Help and ReviewChapter 5 / Lesson 18