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Topic
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During year 2, Teb, Inc. had the following activities related to its financial operations:
Payment for the early retirement of long-term bonds payable (carrying value $740,000) $750,000
Distribution in year 2 of cash dividend declared in year 1 to preferred shareholders 62,000
Carrying value of convertible preferred stock in Teb, converted into common shares 120,000
Proceeds from sale of treasury stock (carrying value at cost, $86,000) 95,000
In Teb’s year 2 statement of cash flows, net cash used in financing activities should be
A. $716,000
B. $597,000
C. $535,000
D. $717,000
The answer given is $717k… Not sure I understand.
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