On January 1, 2019, Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $285,880.07. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary. Present value of principal$fill in the blank 1 Present value of interestfill in the blank 2 Selling price

Face Value of Bonds = $275,000

Annual Coupon Rate = 10%

Semiannual Coupon Rate = 5%

Semiannual Coupon = 5% * $275,000 =  $13,750

Time to Maturity = 5 years

Semiannual Period = 10

Annual Interest Rate = 9%

Semiannual Interest Rate = 4.5%

Present Value of Principal = $275,000 * PV of $1 (4.50%, 10)

Present Value of Principal = $275,000 * 0.643928

Present Value of Principal = $177,080.20

Present Value of Interest = $13,750 * PVA of $1 (4.50%, 10)

Present Value of Interest = $13,750 * 7.912718

Present Value of Interest = $108,799.87

Cross-Check

Selling Price = Present Value of Principal + Present Value of Interest  = $177,080.20 + $108,799.87 = $285,880.07

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.