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The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary

The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin issues bonds:Select: 1

It is a source of cash and will be shown in the financing section as an addition.
It is a use of cash, and will be shown in the investing section as a subtraction.
It is a source of cash, and will be shown in the investing section as an addition.
It is a use of cash, and will be shown in the financing section as a subtractionimage text in transcribed
2017 51,280 3,992 $13,124 59,887 he Cash Flow Statement examines what happened in the Cash Cash Flows from Operating Activities 2018 t during the yesr. Cssh injections appear as positive numbers and Net Income (Loss) Deprecistion Extraordinsry gainslosses/writeoffs ash withdrawals as negative numbers. The Cssh Flow Statement is an llent tool for diagnosing emergency S810 52,812 ($5,248) 5871 ows exceed positives, you are forced to seek emergency funding. For Accounts Payable if sales are bad and you find yourself carrying an abundance of Inventory ($2,083) ($21 ss inventory, the report would show the increase in inventory as s uge negative cash flow. Too much unexpected inventory could outstrip our inflows, exhaust Accounts Receivable your starting cash and force you to beg for money Net cash from S15,993 59,421 to Cash Flows from Investing Activities Plant Improvements Cash Flows from aflost (551,930) (540,900) Financing Activities Cash Flow Summary Baldwin Sales of Common Stock Purchase of Common Stock Cash from long term debt S17,7774,272 S34,368 17,79 $11,897 ($3,786 40,000 etirement of long term debt in current debt (net) 20,000 t cash from financing a Net change in cash position Closing cash position ctivities S52,742 S18,301 $18,775 (513,178) 538,147 519,372 -20,000 40,000 Operations Finance Chg. Cash Finance Operations Chq. Cash Investment

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