At December 31, 2017, the company had $250,000 of 8% 20-year bonds outstanding. These bonds

were originally issued at par in 2004. The terms of the bond indenture allowed the company

to redeem the entire issue at the face amount. Accordingly, the company redeemed the

bonds at March 31, 2018. The amount received by each bondholder at that date was the face

amount of the bonds held plus the interest accrued since the interest was last paid on

December 31, 2017. What is the affect that this has on the number presented on the statement of cash flows for the year ended 12/31/2018?

Trial Balance December 31, 2018 and 2017 2018 2017 Debits Credits Debits Credits $ $ 127,373 430,600 100,825 390,200 $ 27,000 $ 23,000 635,740 20,000 16,460 100,000 560,000 576,475 23,500 14,850 100,000 400,000 248,000 230,000 381,000 290,000 160,000 103,000 9 Cash 10 Accounts receivable 11 Allowance for doubtful accounts 12 Inventory 13 Prepaid expenses 14 Cash surrender value of life insurance 15 Land 16 Buildings 17 Accumulated depreciation - buildings 18 Equipment 19 Accumulated depreciation - equipment 20 Patents 21 Trademarks 22 Accounts payable 23 Income taxes payable 24 Salaries and wages payable 25 Long-term notes payable 26 Bonds payable 27 Premium on bonds payable 28 Common stock 29 Paid-in capital in excess of par 30 Retained earnings 96,000 25,000 70,000 35,000 534,000 62,000 73,500 60,000 300,000 5,700 150,000 568,000 203,973 508,000 34,500 42,750 100,000 250,000 125,000 418,000 166,600 $ 2,392,173 $ 2,392,173 $ 2,000,850 $ 2,000,850