Question: The following information was drawn from the
The following information was drawn from the year-end balance sheets of Fox River Inc. 
Additional information regarding transactions occurring during Year 2: 1. Fox River Inc. issued $100,000 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Fox River Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $32,000. Required 1. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. 2. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. 3. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. 4. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows. 5. Prepare the financing activities section of the Year 2 statement of cash flows.
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