Investing and Financing Cash Flows During the year, Paxon Corporation\'s Long-Te

Question

Investing and Financing Cash Flows
During the year, Paxon Corporation's Long-Term Investments account (at cost) increased $18,000, the net result of purchasing stocks costing $83,000 and selling stocks costing $65,000 at a $6,000 loss. Also, the Bonds Payable account decreased by $60,000, the net result of issuing $110,000 of bonds at 103 and retiring bonds with a face value (and book value) of $170,000 at a $9,000 gain. What items and amounts will appear in the (a) cash flows from investing activities and the (b) cash flows from financing activities sections of Paxon's statement of cash flows?

Use a negative sign with cash outflow answers.

a.

b.

Cash flow from investing activities will show Purchase of Stock Investments $Answer Sale of Stock Investments Answer

Explanation / Answer

a)

b)

Cash flow from investing activities will show Purchase of Stock Investments (83000) Sale of Stock Investments 59000

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