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The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title. Bonds payable Common stock Treasury stock Retained earnings Required Additional information regarding transactions occurring during Year 2: 1. Munoz River, Inc. issued $40,000 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. Munoz 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 $33,900. Year 2 Year 1 $685,000 $1,055,000 197,000 34,500 84,400 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. 134,000 10,000 63,100 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. Req A to D Complete this question by entering your answers in the tabs below. Req E Prepare the financing activities section of the year 2 statement of cash flows. (Cash outflows should be indicated with mi sign.) Cash Flows from financing activities Net cash flow from financing activities

The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title. Bonds payable Common stock Treasury stock Retained earnings Required Additional information regarding transactions occurring during Year 2: 1. Munoz River, Inc. issued $40,000 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. Munoz 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 $33,900. Year 2 Year 1 $685,000 $1,055,000 197,000 34,500 84,400 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. 134,000 10,000 63,100 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. Req A to D Complete this question by entering your answers in the tabs below. Req E Prepare the financing activities section of the year 2 statement of cash flows. (Cash outflows should be indicated with mi sign.) Cash Flows from financing activities Net cash flow from financing activities

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title Bonds payable Common stock Treasury stock Retained earnings Required Year 2 $685,000 197,000 34,500 84,400 Additional information regarding transactions occurring during Year 2: 1. Munoz River, Inc. issued $40,000 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. Munoz 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 $33,900. a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. Year 1 $1,055,000 b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. Req A to D 134,000 10,000 63,100 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. Req E Complete this question by entering your answers in the tabs below. Cash Flows from financing activities Prepare the financing activities section of the year 2 statement of cash flows. (Cash outflows should be indicated with mi sign.) Net cash flow from financing activities
Transcribed Image Text:The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title Bonds payable Common stock Treasury stock Retained earnings Required Year 2 $685,000 197,000 34,500 84,400 Additional information regarding transactions occurring during Year 2: 1. Munoz River, Inc. issued $40,000 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. Munoz 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 $33,900. a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. Year 1 $1,055,000 b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. Req A to D 134,000 10,000 63,100 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. Req E Complete this question by entering your answers in the tabs below. Cash Flows from financing activities Prepare the financing activities section of the year 2 statement of cash flows. (Cash outflows should be indicated with mi sign.) Net cash flow from financing activities
The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title Bonds payable Common stock Treasury stock Retained earnings Required Additional information regarding transactions occurring during Year 2: 1. Munoz River, Inc. issued $40,000 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. Munoz 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 $33,900. Year 2 Year 1 $685,000 $1,055,000 197,000 34,500 84,400 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. 134,000 10,000 63,100 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. Req A to D Complete this question by entering your answers in the tabs below. Req E Determine the amount of cash flow for the retirement of bonds, for the issue of common stock, for the purchase of treasu 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 Req E >
Transcribed Image Text:The following information was drawn from the year-end balance sheets of Munoz River, Inc. Account Title Bonds payable Common stock Treasury stock Retained earnings Required Additional information regarding transactions occurring during Year 2: 1. Munoz River, Inc. issued $40,000 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. Munoz 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 $33,900. Year 2 Year 1 $685,000 $1,055,000 197,000 34,500 84,400 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. 134,000 10,000 63,100 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. Req A to D Complete this question by entering your answers in the tabs below. Req E Determine the amount of cash flow for the retirement of bonds, for the issue of common stock, for the purchase of treasu 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 Req E >
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