If $1,200,000 of bonds are issued during the year but $2,500,000 of old bonds are retired during the year, the statement of cash flows will show a(n)
A)net increase in cash of $1,300,000.
B)net decrease in cash of $1,200,000.
C)increase in cash of $1,200,000 and a decrease in cash of $2,500,000.
D)net loss on retirement of bonds of $1,300,000.

Question

Quizplus · Accepted Answer

The statement of cash flows will show an increase in cash of $1,200,000 from the issuance of new bonds and a decrease in cash of $2,500,000 from the retirement of old bonds.

If $1,200,000 of Bonds Are Issued During the Year but $2,500,000