During 2019, Xylo Company sells common stock for $260,000; retires a bond at a cost of...

During 2019, Xylo Company sells common stock for $260,000; retires a bond at a cost of $241,000; and pays dividends to shareholders of $29,550. The impact of these activities on the statement of cash flows is

$260,000 increase in the investing section
$10,550 increase in the financing section
$10,550 decrease in the financing section
$19,000 increase in the investing activities section

Common stock issued in exchange for land would be reported in the statement of cash flows in

the cash flows from financing activities section
the cash flows from investing activities section
a separate schedule
the cash flows from operating activities section

Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?

retiring of bond payable
acquiring of treasury stock
declaring stock dividends
issuing long-term debt

A five-year bond was issued at par for $640,000 cash. This transaction should be shown on a statement of cash flows under

investing activities
operating activities
financing activities
noncash activities

Expert Solution

Answer- 1)- During 2019, Xylo Company sells common stock for $260,000; retires a bond at a cost of $241,000; and pays dividends to shareholders of $29,550. The impact of these activities on the statement of cash flows is = $10,550 decrease in the financing section.

Explanation-

Cash Flow from Financing activities

Cash dividends paid		-29550
Common stock issued		260000
Bonds paid		-241000

Net cash Flow from Financing activities		-10550

2)- Common stock issued in exchange for land would be reported in the statement of cash flows in= a separate schedule.

Explanation- A non cash investing and financing activities.

3)- The following represents an inflow of cash and therefore would be reported on the statement of cash flows = issuing long-term debt.

4)- A five-year bond was issued at par for $640,000 cash. This transaction should be shown on a statement of cash flows under= financing activities.

ekkarill92 answered 2 years ago

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