Jaderong Plinkett Stores reported net income of \($25\) million. Th e company has no outstanding debt. Using the following information from the comparative balance sheets (in millions), what should the company report in the fi nancing section of the statement of cash fl ows in 2018?

A . Issuance of common stock of \($42\) million; dividends paid of \($10\) million.
B . Issuance of common stock of \($38\) million; dividends paid of \($10\) million.
C . Issuance of common stock of \($42\) million; dividends paid of \($40\) million.

Transcribed Image Text:

Balance Sheet Item 12/31/2017 12/31/2018 Change Common stock $100 $102 $ 2 Additional paid-in capital common stock $100 $140 $40 Retained earnings $100 $115 $15 Total stockholders' equity $300 $357 $57