1) A company reported that its bonds with a par value of $50,000 and a carrying

Question

1) A company reported that its bonds with a par value of $50,000 and a carrying value of $57,500 are retired for $60,600 cash, resulting in a loss of $3,100. The amount to be reported under cash flows from financing activities is:
2)Sweet Company’s outstanding stock consists of 1,100 shares of cumulative 5% preferred stock with a $100 par value and 11,100 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1 $ 3,100 year 2 $ 7,100 year 3 $ 37,500
1) A company reported that its bonds with a par value of $50,000 and a carrying value of $57,500 are retired for $60,600 cash, resulting in a loss of $3,100. The amount to be reported under cash flows from financing activities is:
2)Sweet Company’s outstanding stock consists of 1,100 shares of cumulative 5% preferred stock with a $100 par value and 11,100 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1 $ 3,100 year 2 $ 7,100 year 3 $ 37,500

2)Sweet Company’s outstanding stock consists of 1,100 shares of cumulative 5% preferred stock with a $100 par value and 11,100 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1 $ 3,100 year 2 $ 7,100 year 3 $ 37,500

Explanation / Answer

1) The amount to be reported under cash flows from financing activities is $60600.

As the company is paying cash, thus such amount will get deducted in the statement of cash flow under financing activities.

2)

Please note that question number 2 is not clear. It is not mentioned clearly what is required to answer. Kindly post the question properly in the comments below. So that I can answer it.

Thank you.

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