Reference no: EM132544089

The following information was drawn from the year-end balance sheets of Fox River, Inc.:

Account Title             Year 2             Year 1

Bonds payable        $700,000           $980,000

Common stock            203,000             138,000

Treasury stock              26,000                14,500

Retained earnings            87,000          60,300

Additional information regarding transactions occurring during Year 2:

1. Fox River, Inc. issued $48,200 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. Fox 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 $35,200.

Required

Question a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows.

Question b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows.

Question c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows.

Question d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows.