SB Problem [The following information applies to the questions displayed below.) The note...
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SB Problem [The following information applies to the questions displayed below.) The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2017 disclosed the following: 7.45notes due 2018 7.959 notes due 2023 8.209 notes due 2032 7.839 notes due 2040 6.75 notes due 2019 $204,400,000 $348,200,000 $229,000,000 $204,000,000 $ 25,400,000 The above table summarizes the long-term debt of the Company at December 31, 2017. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assuming that the notes pay interest annually and mature on December 31 of the respective years. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Problem 6-84 Required: Suppose that Healdsburg enters into a sales contract with an auto manufacturer on January 1, 2018, to provide tires that cost Healdsburg $18.4 million to produce. The buyer offers Healdsburg $6.20 million in cash and agrees to take over only the principal payment on Healdsburg's 6.75% debt notes. Assume that the going market interest is 7% at the time. What would Healdsburg's gross profit be on the sale? (Enter your answer in whole dollars. Round your final answer to nearest whole dollar.) Gross profit
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