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Question 84
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Use the following to answer questions
The note about debt included in the financial statements of Healdsburg Company for the year ended December 31,2015 disclosed the following:
Debt.The following table summarizes the long-term debt of the Company at December 31,2015.All of the notes were issued at their face (maturity)value.
img Required: Assuming that the notes pay interest annually and mature on December 31 of the respective years,compute the following:
-Suppose that Healdsburg enters into a sales contract with an auto manufacturer on January 1,2016,to provide tires that cost Healdsburg $18 million to produce.The buyer offers Healdsburg $6 million in cash and agrees to take over only the principal payment on Healdsburg's 6.55% debt notes.Assume that the going market interest is 7% at the time.What would Healdsburg's gross profit be on the sale?

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