Problem
Loan notes On 1 January 2023, Alicia Co issued a $20 million 6% five-year loan notes. Interest is payable annually in arrears. The loan note are issued at a discouont of 10%, and will be redeemed at a premium. The effective rate of interest is 12%. The issue cost were $1 million. Provide extracts showing the impacts of the loan on the statement of profit and loss, the statement of financial position and the statement of cash flows. Use the following template. 10 Marks Extracts from the financial statements for year ended 31/12/2022 Statement of financial position Non-current liabilities Statement of profit and loss Finance cost Statement of Cash flows Operating activities Add back Less Financing activities.