Financing Activities Video Lessons

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Problem: A corporation issued $2,000,000 of 20-year bonds for cash at 108. How would this transaction be reported in the statement of cash flows?a) $2,000,000 inflow in cash flows from financing activitiesb) $2,000,000 inflow in cash flows from investing activitiesc) $2,160,000 inflow in cash flows from financing activitiesd) $2,160,000 inflow in cash flows from investing activities

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Problem Details

A corporation issued $2,000,000 of 20-year bonds for cash at 108. How would this transaction be reported in the statement of cash flows?

a) $2,000,000 inflow in cash flows from financing activities

b) $2,000,000 inflow in cash flows from investing activities

c) $2,160,000 inflow in cash flows from financing activities

d) $2,160,000 inflow in cash flows from investing activities

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