Cambell Inc. issued $100,000, 6%, 10-year bonds on January 1, 2020, for $86,580, with interest payments...

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Cambell Inc. issued $100,000, 6%, 10-year bonds on January 1, 2020, for $86,580, with interest payments due annually at the end of each year. The amount of the discount amortization in year one is $926 using the effec- tive interest rate method. Indicate the impact on the (a) operating activities section and the (b) financing activi- ties section of the 2020 statement of cash flows, assuming the indirect method is used to present cash flows from operating activities. Cambell Inc. issued $100,000, 6%, 10-year bonds on January 1, 2020, for $86,580, with interest payments due annually at the end of each year. The amount of the discount amortization in year one is $926 using the effec- tive interest rate method. Indicate the impact on the (a) operating activities section and the (b) financing activi- ties section of the 2020 statement of cash flows, assuming the indirect method is used to present cash flows from operating activities.

Answer rating: 100% (QA)

Impact on Cash Flow Statement Financing Activities Section The issuance of the bonds for 86580 would ... View the full answer