On January $1,$ Year $1,$ DIBA Company had a balance of $$599,000$ in its Bonds Payable account. During Year $1,$ DIBA issued bonds with a $$162,000$ face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December $31,$ Year $1,$ was $$223,000.$

Required

a$.$ Determine the cash outflow for the repayment of bond liabilities assuming that the bonds were retired at face value.

Cash outflow for the repayment of bond liabilities

b$.$ Prepare the financing activities section of the Year $1$ statement of cash flows.

Note: Amounts to be deducted should be indicated with a minus sign.

Cash flows from financing activities:

Net cash flow from financing activities