Use the amortization schedule for a debt issued at a premium to fill in the blanks on the statement of cash flows. The company uses straight-line amortization for the bond premium. The debt is paid back at the end of year 2. Since the set up clearly specifies cash inflows and outflows, there is no need to put parentheses around your numbers.

	Cash Paid	Interest Expense	Premium Amortized	Carrying Value
Date of Issuance				200
End of Period 1	60	10	50	150
End of Period 2	60	10	50	100

Statement of Cash Flows, Direct Method of Presenting CFO

	Period 1	Period 2
CF Operating: Cash Paid
CF Financing:
Cash received
Cash Paid