The adjusted trial balance for Pina Colada Corp. at the end of the current year contained the following accounts. 5-year Bonds Payable 8% $1650000 Bond Interest Payable 52000 Premium on Bonds Payable 103000 Notes Payable (3 mo.) 41000 Notes Payable (5 yr.) 170000 Mortgage Payable ($15000 due currently) 206000 Salaries and Wages Payable 19000 Taxes Payable (due 3/15 of next yr) 26000 The total long-term liabilities reported on the balance sheet are

What is the difference between secure bonds and naked bonds?

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)