Problem 14-16A (Algo) Determining cash flows from financing activities LO 14-4

The following information was drawn from the year-end balance sheets of Rooney River, Inc.

Account Title	Year 2			Year 1
Bonds payable	$	690,000		$	1,015,000
Common stock		198,000			130,000
Treasury stock		27,500			9,000
Retained earnings		81,900			62,100

Additional information regarding transactions occurring during Year 2:

Rooney River, Inc. issued $42,800 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value.

Common stock did not have a par value.

Rooney River, Inc. uses the cost method to account for treasury stock.

The amount of net income shown on the Year 2 income statement was $35,400.

Required

Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows.

Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows.

Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows.

Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows.

Prepare the financing activities section of the Year 2 statement of cash flows.

Complete this question by entering your answers in the tabs below. Prepare the financing activities section of the year 2 statement of cash flows. (Cash outflows should be indicated w sign.) Complete this question by entering your answers in the tabs below. Determine the amount of cash flow for the retirement of bonds, for the issue of common stock, for the purchase of stock and for the payment of dividends that should appear on the Year 2 statement of cash flows