Statement of cash flows

During 2010, Cosgrove’s Common Stock and Additional Paid-in Capital accounts increased by $35,000 and $257,000, respectively. If no common stock was retired during 2010, what is the amount shown on the statement of cash flows with respect to common stock? In what section is this disclosed?

During 2010, Woodland Incorporated issued a long-term note for $50,000. In this same time period, Woodland paid off another long-term note of $70,000.

How would Woodland reflect these events on the statement of cash flows? Why? In what section do these events appear?

On March 1, 2010, Price Incorporated issued 10-year bonds with a face value of $600,000 and a face interest rate of 8 percent that was paid semiannually on March 1 and September 1. The bonds were sold to yield a market rate of 6 percent.

What is the cash inflow shown in the financing section of the statement of cash flows for the year ended December 31, 2010?

Solution:

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