Discussion:Issuing Bonds
Assume the role of a business owner who has to make a decision to raise additional capital.
What considerations would you evaluate relative to issuing bonds as compared with conventional financing methods?
How would you reflect the bond transactions on your statement of cash flows, and how would the financial statement users use that information?
Resources:
Studies Readings
In Financial Accounting textbook, read:
Libby, R., Libby, P. A., & Short, D. G. (2014). Financial accounting (8th ed.) [Custom text bundle]. New York, NY: McGraw-Hill
o Chapter , "Reporting and Interpreting Bonds" .
o Chapter , "Statement of Cash Flows".