70.2K

Verified Solution

Link Copied!

During the year, a company reported that its bonds with a par value of $50,000 and a carrying value of $67,000 are retired for $72,000 cash, resulting in a loss of $5,000. The amount to be reported under cash flows from financing activities is:

$(5,000).

$(72,000).

$(17,000).

$(67,000).

$17,000.

GOEDL COMPANY Selected Balance Sheet Information December 31, 2015 and 2014
	2015		2014
Current assets
Cash	$	94,650	$	36,800
Accounts receivable		35,000		52,000
Inventory		70,000		56,100
Current liabilities
Accounts payable		50,400		35,700
Income taxes payable		3,050		4,200

GOEDL COMPANY Income Statement For Year Ended December 31, 2015
Sales			$	584,000
Cost of goods sold				371,600
Gross profit				212,400
Operating expenses
Depreciation expense	$	56,000
Other expenses		132,000		188,000
Income before taxes				24,400
Income taxes expense				13,300
Net income			$	11,100

Above is the financial data for Goedl Company. Use this information to calculate Goedl Companys cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Answer & Explanation Solved by verified expert

See Answer