6. a. The cash inflows during the year that resulted from the principal portion of debt transactions is provided in the Financing activities section of the cash flow statement. b. Operating activities section of the cash flow statement. c. Investing activities section of the cash flow statement. d. both a and b. 7. a. c. The times interest earned ratio uses income before interest expense and taxes because interest and taxes are important components in all ratio analysis. b. paying interest and taxes does not affect a company's solvency. the ratio is easier to compute without these items. d. this number best represents the amount available to pay interest. A bond issued at a premium is issued by a corporation with an excellent credit rating, b. has a stated rate of interest that exceeds the market rate. sell at a price in excess of the face amount of the bond. d. both has a stated rate of interest that exceeds the market rate and sell at a price 8. a. c