Doyle Company issued $470,000 of 10-year, 7 percent bonds on January 1, Year 2. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $53,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2.

b. Prepare the income statement, balance sheet, and statement of cash flows for Year 2 and Year 3.

Prepare the statement of cash flows for Year 2 and Year 3. (Amounts to be deducted and cash outflows should be indicated with minus sign.) DOYLE COMPANY Statement of Cash Flows For the Year Ended December 31 Year 2 Cash flows from operating activities Year 3 Net cash flow from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance