Refer to all of the facts in Problem 11-1A.
In Problem 11-1A
Kebler Company was incorporated as a new business on January 1, 2016. The corporate charter approved on that date authorized the issuance of 2,000 shares of $100 par, 7% cumulative, non-participating preferred stock and 20,000 shares of $5 par common stock. On January 10, Kebler issued for cash 1,000 shares of preferred stock at $120 per share and 8,000 shares of common stock at $80 per share. On January 20, it issued 2,000 shares of common stock to acquire a building site at a time when the stock was selling for $70 per share.
During 2016, Kebler established an employee benefit plan and acquired 1,000 shares of common stock at $60 per share as treasury stock for that purpose. Later in 2016, it resold 100 shares of the stock at $65 per share.
On December 31, 2016, Kebler determined its net income for the year to be $80,000. The firm declared the annual cash dividend to preferred stockholders and a cash dividend of $5 per share to the common stockholders. The dividend will be paid in 2017.
Required
Indicate how each transaction affects the cash flow of Kebler Company by preparing the Financing Activities section of the 2016 statement of cash flows. Provide an explanation for the exclusion of any of these transactions from the Financing Activities section of the statement.