The following information was drawn from the year-end balance sheets of Thornton River, Inc.Account Title Year 2Bonds payable $655,000Common stockTreasury stockRetainedearningsAdditional information regarding transactions occurring during Year 2:1. Thornton River, Inc. issued $41,500 of bonds during Year 2. The bonds were issued at face value. All bonds retiredwere retired at face value.2. Common stock did not have a par value.3. Thornton 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 $35,600.Requireda. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cashflows.b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement ofcash flows.c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement ofcash flows.Year 1$970,000199,000 134,00030,00014,50084,80067,800d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cashflows.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.Req A toDReq EDetermine the amount of cash flow for the retirement of bonds, for the issue of commonstock, for the purchase of treasury stock and for the payment of dividends that shouldappear on the Year 2 statement of cash flows.a.b.Cash flow from the issue ofcommon stockCash flow for the purchase oftreasury stockd.Cash flow for the payment ofdividendsC.Cash flow for the retirement ofbondsShow less The following information was drawn from the year-end balance sheets of Thornton River, Inc.Account Title Year 2Year 1$970,000Bonds payable $655,000Common stockTreasury stock199,000134,00030,00014,500Retained84,80067,800earningsAdditional information regarding transactions occurring during Year 2:1. Thornton River, Inc. issued $41,500 of bonds during Year 2. The bonds were issued at face value. All bonds retiredwere retired at face value.2. Common stock did not have a par value.3. Thornton 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 $35,600.Requireda. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cashflows.b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement ofcash flows.c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement ofcash flows.d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cashflows.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.Req A toDReq EPrepare the financing activities section of the year 2 statement of cash flows. (Cashoutflows should be indicated with minus sign.)Cash Flows from financingactivitiesNet cash flow from financingactivities$0

The cash flow statement is prepared to record the cash flow from various activities during the. The…

he following information was drawn from the year-end balance sheets of Thornton River, Inc. Account Title Year 2 Year 1 Bonds payable $655,000 $970,000 Common stock Treasury stock 134,000 199,000 30,000 14,500 Retained 84,800 67,800 earnings dditional information regarding transactions occurring during Year 2: Thornton River, Inc. issued $41,500 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. Thornton River, Inc. uses the cost method to account for treasury stock. The amount of net income shown on the Year 2 income statement was $35,600. equired 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. Complete this question by entering your answers in the tabs below.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q