Exercise $14-12$A $($Algo$)$ Determining cash flows from financing activities LO $14-4$

$375$ points $q,$

On January $1,$ Year $1,$ Zachary Company had a balance of $$106,000$ in its Common Stock account. During Year $1,$ Zachary paid $$31,000$ 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 $$143,500.$ 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.

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Determine the cash inflow from the issue of common stock.

Common stock issued