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Account Title Bonds payable Common stock Treasury stock Retained earnings Year 2 $620,000 201,000 26,000 80,400 Year 1 $1,075,000 127,000 5,500 66,600 Additional information regarding

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Account Title Bonds payable Common stock Treasury stock Retained earnings Year 2 $620,000 201,000 26,000 80,400 Year 1 $1,075,000 127,000 5,500 66,600 Additional information regarding transactions occurring during Year 2: 1. Fox River, Inc. issued $44,400 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Fox River, Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $33,800. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the Yer 2 statement of cash flows. Cash flow for the retirement of bonds b. Cash flow from the issue of common stock c. Cash flow for the purchase of treasury stock d. Cash flow for the payment of dividends e. Prepare the financing activities section of the Year 2 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from financing activities: 0 Net cash flow from financing activities

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