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