Question

Statement of Cash Flows (Direct Method) The Dairy Company's income statement and comparative balance sheets as of December 31 of 2016 and 2015 follow: DAIRY COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $700,000 Cost of Goods Sold $460,000 Wages and Other Operating Expenses 95,000 Depreciation Expense 22,000 Patent Amortization Expense 7,000 Interest Expense 10,000 Income Tax Expense 36,000 Loss on Bond Retirement 5,000 635,000 Net Income 65,000 DAIRY COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets Cash $22,000 $18,000 Accounts Receivable 43,000 28,000 Inventory 103,000 129,000 Prepaid Expenses 12,000 10,000 Plant Assets 360,000 336,000 Accumulated Depreciation (87,000) (84,000) Goodwill 43,000 50,000 Total Assets $496,000 $487,000 Liabilities and Stockholders' Equity Accounts Payable $32,000 $26,000 Interest Payable 4,000 7,000 Income Tax Payable 6,000 8,000 Bonds Payable 60,000 100,000 Common Stock 252,000 248,000 Retained Earnings 142,000 98,000 Total Liabilities and Stockholders' Equity $496,000 $487,000 During the year, the company sold for $17,000 cash old equipment that had cost $36,000 and had $19,000 accumulated depreciation. New equipment worth $60,000 was acquired in exchange for $60,000 of bonds payable. Bonds payable of $100,000 were retired for cash at a loss. A $21,000 cash dividend was declared and paid. All stocks' issuance were for cash. Required a. Compute the change in cash that occurred in 2016.

Answer 1

Cash flow from Financing Activities
Retirements of Bonds payable				$(105,000.00)
Issuance of Common Stock				$      4,000.00
Payment of Dividends				$   (21,000.00)
Cash used by Financing Activities					$(122,000.00)

Is this correct?I've only prepared the Cash Flow from Financing Activities Section since I saw you've done the rest of the portions correctly.

Workings:

Retirements of Bonds Payable = $ 100000 + $ 5000 (Loss)