A firm plans to retire outstanding bonds in the next planning period. Which of the following gets affected?

Question

Quizplus · Accepted Answer

Retiring outstanding bonds will have an impact on the pro forma income statement and pro forma balance sheet, as it will involve a repayment of debt and a reduction in interest expense. The previous year's financial statements or the statement of retained earnings are not impacted by this action, and a proxy statement does not typically include information on the retirement of bonds.

A Firm Plans to Retire Outstanding Bonds in the Next