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Question
The following information was obtained from the Warrior Corporation's financial statements for the year ending December 31, 2012:
Bonds with a maturity value of $600,000 were issued for cash.
The premium on bonds payable account increased $12,500 during the year.
Bond interest expense was $30,500.
There was $500 of amortization of premium on newly issued bonds payable.
Retained earnings increased $119,300 during the year.
A 5% common stock dividend resulted in 5,000 shares of $5 par value common stock being issued at a time when the market price per share was $17.
Common stock was sold in exchange for cash.
The common stock account increased $70,000 during the year.
The additional paid-in capital account increased $210,000 during the year.
Net income for the year was $217,400.
Required: Determine the cash flow from financing activities for the year ending December 31, 2012.
Answer
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