The following information was drawn from the year end balance sheets of Finch River, Inc Account Title 2017 2016 Bonds payable $ 735,000 $ 975,000 Common stock 201,000 122,000 Treasury stock 27,500 10,500 Retained earnings 87,900 61,500 Additional information regarding transactions occurring during 2017 Finch River, Inc , issued $47,300 of bonds during 2017 The bonds were issued at face value All bonds retired were retired at face value Common stock did not have a par value Finch River, Inc , uses the cost method to account for treasury stock The amount of net income shown on the 2017 income statement was $35,600 Required Determine the amount of cash flow for the retirement of bonds that should appear on the 2017 statement of cash flows Determine the amount of cash flow from the issue of common stock that should appear on the 2017 statement of cash flows Determine the amount of cash flow for the purchase of treasury stock that should appear on the 2017 statement of cash flows Determine the amount of cash flow for the payment of dividends that should appear on the 2017 statement of cash flows Prepare the financing activities section of the 2017 statement of cash flows 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 2017 statement of cash flows Prepare the financing activities section of the 2017 statement of cash flows (Cash outflows should be indicated with minus sign )

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 11, 2024

The following information was drawn from the year-end balance sheets of Finch River, Inc.: Account Title 2017 2016 Bonds payable $ 735,000 $ 975,000 Common

The following information was drawn from the year-end balance sheets of Finch River, Inc.:

Account Title	2017		2016
Bonds payable	$	735,000	$	975,000
Common stock		201,000		122,000
Treasury stock		27,500		10,500
Retained earnings		87,900		61,500

Additional information regarding transactions occurring during 2017:

Finch River, Inc., issued $47,300 of bonds during 2017. The bonds were issued at face value. All bonds retired were retired at face value.
Common stock did not have a par value.
Finch River, Inc., uses the cost method to account for treasury stock.
The amount of net income shown on the 2017 income statement was $35,600.

Required

Determine the amount of cash flow for the retirement of bonds that should appear on the 2017 statement of cash flows.
Determine the amount of cash flow from the issue of common stock that should appear on the 2017 statement of cash flows.
Determine the amount of cash flow for the purchase of treasury stock that should appear on the 2017 statement of cash flows.
Determine the amount of cash flow for the payment of dividends that should appear on the 2017 statement of cash flows.
Prepare the financing activities section of the 2017 statement of cash flows.

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 2017 statement of cash flows.

Prepare the financing activities section of the 2017 statement of cash flows. (Cash outflows should be indicated with minus sign.)