Question - The following accounts and corresponding balances were drawn from Berry Company's 2012 and 2011 year-end balance sheets.
Account Title 2012 2011
Bonds payable $ 210,000 $ 300,000
Common stock 370,000 275,000
Other information drawn from the accounting records:
1. Dividends paid during the period amounted to $30,000.
2. There were no bond liabilities issued during the period.
(a) Compute the amount of cash flow associated with the repayment of bond liabilities.
(b) Compute the amount of cash flow associated with the issue of common stock.
(c) Prepare the financing activities section of the statement of cash flows.