Question :
Flyer Company has provided the subsequent information prior to any year-end bad debt adjustment:
- Cash sales, $150,000
- Credit sales, $450,000
- Administrative and Selling expenses, $110,000
- Sales returns and allowances, $30,000
- Gross profit, $490,000
- Accounts receivable, $110,000
- Sales discounts, $14,000
- Allowance for doubtful accounts credit balance, $1,200
Flyer prepares an aging of accounts receivable and the result indicates that 5% of accounts receivable is estimated to be uncollectible. Evaluate bad debt expense?
Company Bonds Inc. issues the subsequent notes in November 2012:
0.65% Notes due on November 27, 2015 - sum $ 750
1.20% Notes due on November 29, 2017 - sum $ 1,000
2.50% Notes due on November 29, 2022 - sum $ 1,250
The unamortized discount was $27 million at 31st December, 2012
The efficient interest rates of the 2015, 2017, and 2022 Notes were 0.84%, 1.38%, and 2.66%. Interest on the Notes is payable semi-annually in arrears in May and November. We may exchange the Notes at any time in whole, or from time to time, in part at particular redemption prices. We are not subject to any financial covenants under the Notes. We used the net continues from the issuance of the Notes for common corporate purposes. The evaluated fair value of the Notes was approximately $3.0 billion at December 31, 2012, which is based on quoted prices for our publicly-traded debt as of that date.
Requirement:
Evaluate the proceeds Amazon received for the issuance of $3.0 billion notes in November 2012.