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16. Prepare the journal entry for purchasing $100,000 bonds for cash. 17. Prepare the journal entry when purchased $1,000 raw materials on account. 18. Prepare the journal entry for issuing $300,000 bonds for cash at 98 . 19. In essay form, make sure that your answer includes the answers to the following questions: a) explain what a statement of cash flows is b) why it is needed c) the three cash flow activities d) explain which cash flow activity, the following would be included under, whether it is an inflow or outflow, or whether it is not a cash flow activity and why not. 1. depreciation expense 2. cash dividends declared 3. sold equipment for cash