The following information was drawn from the year-end balance sheets of Zachary River, Inc. Account Title Year 2 Year 1 Bonds payable $ 600,000 $ 930,000 Common stock 216,000 138,000 Treasury stock 30,000 10,000 Retained earnings 86,300 64,300 Additional information regarding transactions occurring during Year 2: Zachary River, Inc. issued $40,500 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. Common stock did not have a par value. Zachary River, Inc. uses the cost method to account for treasury stock. The amount of net income shown on the Year 2 income statement was $35,500. Required Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows. Prepare the financing activities section of the Year 2 statement of cash flows.

Additional information regarding transactions occurring during Year 2: 1. Zachary River, Inc. issued $40,500 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. Zachary 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 $35,500. 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. Reg 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 ReqE 3. Zachary 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 $35,500. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. o. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flo c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash fl 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. Reg 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