Question

If $525,000 of bonds are issued during the year but $210,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

Answer 1

Answer and Explanation:

Given:

Issue of new bonds price = $525,000

Retired price of bonds = $210,000

It is given that new bonds price a $525,000 issue and the value of retire Bond price will $210,000.

Issue of new bonds will increase cash by $525,000 because business gets cash from the issue of bonds and retire off the old bond will decrease cash by $210,000.