On January 1, 2016, Hardy Company had a balance of $150,000 in its Common Stock account. During

Question:

On January 1, 2016, Hardy Company had a balance of $150,000 in its Common Stock account.

During 2016, Hardy paid $20,000 to purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account on December 31, 2016, was $175,000. Assume that the common stock is no par stock.

Required

a. Determine the cash inflow from the issue of common stock.

b. Prepare the financing activities section of the 2016 statement of cash flows.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...