f 250000 of bonds are issued during the year but 130000 of o

f $250,000 of bonds are issued during the year but $130,000 of old bonds are retired during the year, the statement of cash flows will show a(n) O a) increase in cash of $250,000 and a decrease in cash of $130,000. O b) net decrease in cash of $120,000. ?c) net gain on retirement of bonds of $120 000 Od) net increase in cash of $120,000. 12 Save Started Ouestion 8 (1 ooint)

Solution

Issuance of bonds leads to cash inflow of 250000

Retirement of bonds lead to cash outflow of 130000

Net cash inflow on cash flow statement = 120000