Haven Corporation issued $700,000 of 10-year bonds payable at par in Year 1. During Year 5, Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at par. These activities would be reported in Haven's statement of cash flows for Year 5 as: Select one: a. $466,667 net cash provided by financing activities, and $50,000 cash disbursed for operating activities. b. $283,333 net cash provided by financing activities. c. $283,333 net cash used in financing activities. d. $233,333 net cash used in financing activities, and $50,000 cash disbursed for operating activities.
Haven Corporation issued $700,000 of 10-year bonds payable at par in Year 1. During Year 5, Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at par. These activities would be reported in Haven's statement of cash flows for Year 5 as: Select one: a. $466,667 net cash provided by financing activities, and $50,000 cash disbursed for operating activities. b. $283,333 net cash provided by financing activities. c. $283,333 net cash used in financing activities. d. $233,333 net cash used in financing activities, and $50,000 cash disbursed for operating activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Haven Corporation issued $700,000 of 10-year bonds payable at par in Year 1. During
Year 5, Haven paid $50,000 interest and an additional $233,333 to retire one-third of
the bonds at par. These activities would be reported in Haven's statement of cash flows
for Year 5 as: Select one:
a. $466,667 net cash provided by financing activities, and $50,000 cash disbursed for
operating activities.
b. $283,333 net cash provided by financing activities.
c. $283,333 net cash used in financing activities.
d. $233,333 net cash used in financing activities, and $50,000 cash disbursed for
operating activities.
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