If $1,200,000 of Bonds Are Issued During the Year but $2,500,000

question 24

Multiple Choice

If $1,200,000 of bonds are issued during the year but $2,500,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

• A)net increase in cash of $1,300,000.
• B)net decrease in cash of $1,200,000.
• C)increase in cash of $1,200,000 and a decrease in cash of $2,500,000.
• D)net loss on retirement of bonds of $1,300,000.

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