Emerson Industries sold a new issue of common stock to investors. How would this be recorded differently in the statement of cash flows than if they used the stock to purchase equipment?

a. The sale of stock to investors should be included in cash flows from financing activities, whereas exchange of stock for equipment should be disclosed in a separate schedule.

b. The sale of stock to investors should be disclosed in a separate schedule, whereas exchange of stock for equipment should be included in cash flows from investing activities.

c. The sale of stock to investors should be included in cash flows from investing activities, whereas the exchange of stock for equipment should be included in cash flows from financing activities.

d. The sale of stock to investors should not be disclosed in the statement of cash flows, whereas exchange of stock for equipment should be disclosed in a separate schedule.