1. On January 1, 2016, Zachary Company had a balance of $549,000 in its Bonds Payable account. During 2016, Zachary issued bonds with a $197,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December 31, 2016, was $209,000.

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 2016 statement of cash flows.

Cash flows from financing activities
Net cash flow from financing activities

2. The following information can be obtained by examining a companys balance sheet and income statement information:

A. Increases in current asset account balances, other than cash.

B. Decreases in current asset account balances, other than cash.

C. Cash outflows to purchase long-term assets.

D. Decreases in current liability account balances.

E. Cash outflows to repay long-term debt.

F. Gains recognized on the sale of long-term assets.

G. Noncash expenses (e.g., depreciation).

H. Cash outflows to purchase treasury stock.

I. Increases in current liability account balances.

J. Cash inflows from the sale of long-term assets.

K. Cash inflows from the issue of common stock.

L. Cash outflows to pay dividends.

M. Losses incurred from the sale of long-term assets.

N. Cash inflows from the issue of long-term debt.

Required For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would be added or subtracted when determining the net cash flow from operating, investing, or financing activities. Assume the indirect method is used to prepare the operating activities section of the statement of cash flows. The first item has been completed as an example. Add or Subtract Subtract ype of Activity a. Operating b. C. d. e. h. m. n