Jones Company issued bonds with a $200,000 face value on January 1, 2016. The five-year term bonds were issued at 97 and had a 7 ½ % stated rate of interest that is payable in cash on December 31st of each year. Jones amortizes the bond discount using the straight-line method. Based on this information:
The amount of cash outflow from operating activities shown on Jones's December 31, 2017 statement of cash flows would be: A. $15,000.
B. $16,200.
C. $13,800.
D. $17,400.
