Exercise 12-11A (Algo) Determining cash flows from financing activities LO 12-4

On January 1, Year 1, DIBA Company had a balance of $448,000 in its Bonds Payable account. During Year 1, DIBA issued bonds with a $186,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December 31, Year 1, was $277,000. Required a. Determine the cash outflow for the repayment of bond liabilities assuming that the bonds were retired at face value. b. Prepare the financing activities section of the Year 1 statement of cash flows.

Cash outflow for the repayment of bond liabilities Cash flows from financing activities: \begin{tabular}{|l|l|} \hline & \\ \hline Net cash flow from financing activities & \\ \hline \end{tabular}