I was able to get the correct answer, but I don't understand why I account for the $120,000 bond payable twice? I am getting confused between the difference in the bonds payable account balances (2016 - 2017) which need to be accounted for and the additional information that the problem provides. The problem provides information about the bonds payable issued for $120,000 in exchange for new equipment and the retirement of bonds $240,0000 at a loss, BUT, how do you how which have been reflected in the account balance so you know what and what not to include in your Financing Cash Flow? Specifically, there was a change of $120,000 in the Bonds Payable account balance from 2016 to 2017. Do I account for that difference in my cash flow and then account for additional bonds payable information that the problem provides ($120,000 bonds payable in exchange for equipment and $240,000 bond retirement)? Please provide an explanation that explains what the difference between the 2016 & 2017 bonds payable account is (what does it include/account for) and how to account for the additional information (240,000 bond retirement, $120,0000 bond payable in exchange for equip) + please show your Financing cash flows. Thank you.

Maybe the exchange of bonds for equipment is considered a non-cash transaction?

Locker Companys income statement and comparative balance sheets follow.

Locker Company Income Statement For Year Ended December 31, 2017
Sales		$1,400,000
Cost of goods sold	$880,000
Wages and other operating expenses	190,000
Depreciation expense	44,000
Amortization expense	14,000
Interest expense	20,000
Income tax expense	72,000
Loss of bond retirement	10,000	1,230,000
Net income		$ 170,000

Locker Company Balance Sheets
	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash	$ 54,000	$ 36,000
Accounts receivable	106,000	96,000
Inventory	206,000	218,000
Prepaid expenses	24,000	20,000
Plant assets	720,000	672,000
Accumulated depreciation	(174,000)	(168,000)
Intangible assets	86,000	100,000
Total assets	$1,022,000	$974,000
Liabilities and Stockholders Equity
Accounts payable	$64,000	$52,000
Interest payable	8,000	14,000
Income tax payable	12,000	16,000
Bonds payable	120,000	240,000
Common stock	504,000	456,000
Retained earnings	314,000	196,000
Total liabilities and equity	$1,022,000	$974,000

During 2017, the company sold for $34,000 cash old equipment that had cost $72,000 and had $38,000 accumulated depreciation. Also in 2017, new equipment worth $120,000 was acquired in exchange for $120,000 of bonds payable, and bonds payable of $240,000 were retired for cash at a loss. A $52,000 cash dividend was declared and paid in 2017. Any stock issuances were for cash. Calculate Locker's net cash flow from financing activities for 2017.

Select one:

A. ($254,000)

B. $ 48,000

C. ($ 52,000)

D. ($250,000)