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The following information was drawn from the year-end balance sheets of Fox River, Incorporated. Account Title Year 2 Year 1 Bonds payable $ 605,000 $

The following information was drawn from the year-end balance sheets of Fox River, Incorporated.

Account Title Year 2 Year 1
Bonds payable $ 605,000 $ 1,095,000
Common stock 210,000 136,000
Treasury stock 28,500 9,000
Retained earnings 89,100 63,800

Additional information regarding transactions occurring during Year 2:

1. Fox River, Incorporated issued $42,500 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. Fox River, Incorporated uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $33,600.

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.

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\begin{tabular}{|l|l|l|} \hline a. & Cash flow for the retirement of bonds & \\ \hline b. & Cash flow from the issue of common stock & \\ \hline c. & Cash flow for the purchase of treasury stock & \\ \hline d. & Cash flow for the payment of dividends & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Cash flows from financing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline Net cash flow from financing activities & \\ \hline \end{tabular}

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