If $400,000 of bonds are issued during the year,but $100,000 of old bonds are retired during the year,the statement of cash flows(indirect method)will show a(n):
A)net gain on retirement of bonds of $300,000 in the financing activities section.
B)increase in cash of $400,000 in the financing activities section and a decrease in cash of $100,000 in the financing activities section.
C)net increase in cash of $300,000 in the operating activities section.
D)net decrease in cash of $300,000 in the operating activities section.

Question

Quizplus · Accepted Answer

The Answer of If $400,000 of bonds are issued during the year,but $100,000 of old bonds are retired during the year,the statement of cash flows(indirect method)will show a(n):
A)net gain on retirement of bonds of $300,000 in the financing activities section.
B)increase in cash of $400,000 in the financing activities section and a decrease in cash of $100,000 in the financing activities section.
C)net increase in cash of $300,000 in the operating activities section.
D)net decrease in cash of $300,000 in the operating activities section.

If $400,000 of Bonds Are Issued During the Year,but $100,000