Problem 14-16A (Algo) Determining cash flows from financing activities LO 14-4 The following information was drawn from the year-end balance sheets of Gibson River, Inc. Account Title Bonds payable Year 2 Year 1 $1,095,000 $605,000 Common stock 209,000 139,000 Treasury stock 25,500 6,000 Retained earnings 87,400 61,400 Additional information regarding transactions occurring during Year 2: 1. Gibson River, Inc. issued $42,700 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired a face value. 2. Common stock did not have a par value. 3. Gibson River, Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $32,500. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows. e. Prepare the financing activities section of the Year 2 statement of cash flows. Complete this question by entering your answers in the tabs below. Req A to D Req E Determine the amount of cash flow for the retirement of bonds, for the issue of common stock, for the purchase of treasury stock and for the payment of dividends that should appear on the Year 2 statement of cash flows. a. Cash flow for the retirement of bonds b. Cash flow from the issue of common stock c. Cash flow for the purchase of treasury stock d. Cash flow for the payment of dividends < Req A to D Req E > Complete this question by entering your answers in the tabs below. Req A to D Req E Prepare the financing activities section of the year 2 statement of cash flows. (Cash outflows should be indicated with minus sign.) Cash Flows from financing activities Net cash flow from financing activities < Req A to D Req E >