Investing and Financing Cash Flows During the year, Paxon Corporation's Long-Term Investments account (at cost) increased $24,000,
Question:
Investing and Financing Cash Flows
During the year, Paxon Corporation's Long-Term Investments account (at cost) increased $24,000, the net result of purchasing stocks costing $128,000 and selling stocks costing $104,000 at a $9,600 loss. Also, the Bonds Payable account decreased by $64,000, the net result of issuing $160,000 of bonds at 99 and retiring bonds with a face value (and book value) of $224,000 at a $14,400 gain. In Paxon's statement of cash flows, what items and amounts will appear in the investing and financing activities sections? (Enter increases before decreases in each section.)
Activity Section | Items | Increases (Decreases) |
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Investing | AnswerCash received for sales of stock investmentsCash received from issuance of bondsCash paid for purchase of stock investmentsCash paid to retire bondsGain on bond redemptionLoss on sale of stockIncrease in Long-term investmentsDecrease in Bonds payable
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AnswerCash received for sales of stock investmentsCash received from issuance of bondsCash paid for purchase of stock investmentsCash paid to retire bondsGain on bond redemptionLoss on sale of stockIncrease in Long-term investmentsDecrease in Bonds payable
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Financing | AnswerCash received for sales of stock investmentsCash received from issuance of bondsCash paid for purchase of stock investmentsCash paid to retire bondsGain on bond redemptionLoss on sale of stockIncrease in Long-term investmentsDecrease in Bonds payable
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AnswerCash received for sales of stock investmentsCash received from issuance of bondsCash paid for purchase of stock investmentsCash paid to retire bondsGain on bond redemptionLoss on sale of stockIncrease in Long-term investmentsDecrease in Bonds payable
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