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issued later in the year for $37.000. Operating (0) Investing 0 Financing (F) Amount of Cash Flow Increase (+) Decrease (-) A
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Answer #1
e) Bonds Retired Financing (F) 61000 Decrease (-)
Cash Dividend Financing (F) 10000 Decrease (-)
Long term note payable Financing (F) 29000 Increase (+)
Explanation:
Retirement of bonds payable is treated as a cash outflow from financing activity because bonds are used to finance the capital requirement.
Cash dividend paid is treated as a cash outflow from financing activity because it is returned to stockholders for capital given.
Long term note payable use for financing hence it is cash inflow from financing activity.
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