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On January 1, 2013, DIBA Company had a balance of $450,000 in its Bonds Payable account. During 2013, DIBA issued bonds with a $200,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December 31, 2013, was $400,000.Required:
a. Determine the cash outflow for the repayment of bond liabilities assuming that the bonds were retired at face value.
b. Prepare the financing activities section of the 2013 statement of cash flows.
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