Question
Kent Inc. issued 2,000 shares of stock at par value of $5 per share. Later in the year when the market price of the stock
Kent Inc. issued 2,000 shares of stock at par value of $5 per share. Later in the year when the market price of the stock reached as high as $9 per share, Kent repurchased 750 of these shares at a cost of $8 per share. The effect of repurchasing the stock would have the following effect on the statement of cash flows: A. increase cash flows by $10,000 in the investing activities B. decrease cash flows by $6,000 in the financing activities C. decrease cash flows by $6,750 in the financing activities D. increase cash flows by $6,000 in investing activities E. not impact the statement of cash flows
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