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The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title Year 2 Bonds payable $685,000 Year 1 $1,020,000
The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title Year 2 Bonds payable $685,000 Year 1 $1,020,000 Common stock 217,000 139,000 Treasury stock 35,000 10,000 Retained earnings 84,700 65,700 Additional information regarding transactions occurring during Year 2: 1. Munoz River, Inc. issued $44,400 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Munoz 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 $35,600. 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.
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