During 2017, paxon corporation's long-term investments account (at cost) increased $15,000, which was the net result of purchasing stocks costing $80,000 and selling stocks costing $65,000 at a $6,000 loss. also, its bonds payable account decreased $40,000, the net result of issuing $100,000 of bonds at $103,000 and retiring bonds with a face value (and book value) of $140,000 at a $9,000 gain.

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During 2017, Paxon Corporation’s long-term investments account (at cost) increased $15,000, which was the net result of purchasing stocks costing $80,000 and selling stocks costing $65,000 at a $6,000 loss. Also, its bonds payable account decreased $40,000, the net result of issuing $100,000 of bonds at $103,000 and retiring bonds with a face value (and book value) of $140,000 at a $9,000 gain.

What items and amounts appear in the (a) cash flows from investing activities and (b) cash flows from financing activities sections of its 2017 statement of cash flows?

Use negative signs with answers, when appropriate.

Cash flows from investing activities  

Purchase of stock investments$Answer

Sale of stock investments$Answer

Cash flows from financing activities  

Issuance of bonds$Answer

Retirement of bonds$Answer

Net cash used by investing activities is -$15,000

Net cash used by financing activities is -$28,000

Explanation:

Firstly,it is imperative to know that the gains or losses on these transactions do not have cash flow impact since gains and losses are  statement of profit or loss items.

Cash flows from investing activities  

Purchase of stock investments                      -$80,000

Sale of stock investments                               $65,000

Net provided/(used) by investing activities                                -$15,000

Cash flows from financing activities  

Issuance of bonds                                              $103,000

Retirement of bonds                                            -$131,000

Net cash provided/(used) by financing activities                         -$28,000

Retirement of bonds with face value of $140,000 at a gain of $9,000 implies that it retired at $9,000 less than its face value,which is $131,000

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