Question

The following information was drawn from the year-end balance sheets of Fox River, Inc.:
Additional information regarding transactions occurring during 2017:
1. Fox River, Inc., issued $100,000 of bonds during 2017. The bonds were issued at face value.
All bonds retired were retired at face value.
2. Common stock did not have a par value.
3. Fox River, Inc., uses the cost method to account for treasury stock.
4. The amount of net income shown on the 2017 income statement was $32,000.
Required
a. Determine the amount of cash flow for the retirement of bonds that should appear on the
2017 statement of cash flows.
b. Determine the amount of cash flow from the issue of common stock that should appear on the 2017 statement of cash flows.
c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the 2017 statement of cash flows.
d. Determine the amount of cash flow for the payment of dividends that should appear on the 2017 statement of cash flows.
e. Prepare the financing activities section of the 2017 statement of cash flows.


$1.99
Sales1
Views48
Comments0
  • CreatedApril 20, 2015
  • Files Included
Post your question
5000