Question
On January 1, Yates Corporation issued $300 million face value bonds for $580 million. During the same year, $1,500,000 of the bond premium was amortized.
On January 1, Yates Corporation issued $300 million face value bonds for $580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect presentation of cash flows from operating activities, the accountants for Yates Corporation should report:
Multiple Choice
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A positive adjustment of $1,500,000 to reconcile net income to net cash from operating activities (i.e., Net Income < CFO).
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A positive cash flow from investing activity of $580 million.
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A positive cash flow from financing activity of $300 million.
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A negative cash flow from financing activities of $1,500,000.
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