This is a piece of a statement of Cash Flows for EOY 2011, I cannot figure out how to calculate the numbers for the line items for Retirement of Bonds Payable (in the Cash flows from Financing Section) and two line items on the Supplemental Cash Flow Disclosures for Cash Paid for Interest and Cash Paid for Income Taxes. The transaction information provided includes: In 2011, new equipment worth $55,000 was acquired in exchange for $55,000 of bonds payable, and bonds payable of $115,000 was retired for cash at a loss. The loss was for $3,000 and was recorded in the Income Statement and also in the Operating Activities Section of the Statement of Cash Flows. Year end Income statement accounts you may need are: Interest Expense $12,000 and Income Tax Expense $35,000. Comparable Balance sheet line items: Interest Payable: EOY 2010: $7,000; EOY 2011: $4,000. Income Tax Payable: EOY 2010: $8,000; EOY 2011: $5,000

(112,000) * 24,000 (25,000) Retirement of Bonds Payable Issuance of Common Stock Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Year Cash at End of Year OX 0x 22,000 OX $ (c) Prepare separate schedules showing (1) cash paid for interest and for income taxes and (2) noncash investing and financing transactions. (1) Supplemental Cash Flow Disclosures Cash Paid for Interest Cash Paid for Income Taxes $ (3,000) * (3,000) * $ (2) Schedule of Noncash Investing and Financing Activities Issuance of Bonds Payable to Acquire Equipment $ 55,000