Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information was drawn from the year-end balance sheets of Benson River, Inc.: Account Title Bonds payable Common stock Treasury stock Retained earnings 2017
The following information was drawn from the year-end balance sheets of Benson River, Inc.: Account Title Bonds payable Common stock Treasury stock Retained earnings 2017 $660,000 214,000 30,500 89, 100 2016 $955,000 129,000 9,000 60,200 Additional information regarding transactions occurring during 2017: 1. Benson River, Inc., issued $48,500 of bonds during 2017. 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. Benson River, Inc., uses the cost method to account for treasury stock. 4. The amount of net income shown on the 2017 income statement was $33,800. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the 2017 statement of cash flows. b. Determine the amount of cash flow from the issue of common stock that should appear on the 2017 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the 2017 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the 2017 statement of cash flows. e. Prepare the financing activities section of the 2017 statement of cash flows. Complete this question by entering your answers in the tabs below. Reqs A to D ReqE 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. 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 a. Determine the amount of cash flow for the retirement of bonds that should appear on the 2017 statement of cash flows. b. Determine the amount of cash flow from the issue of common stock that should appear on the 2017 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the 2017 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the 2017 statement of cash flows. e. Prepare the financing activities section of the 2017 statement of cash flows. Complete this question by entering your answers in the tabs below. Reqs A to D ReqE Prepare the financing activities section of the 2017 statement of cash flows. (Cash outflows should be indicated with minus sign.) Cash Flows from financing activities Net cash flow from investing activities
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started