Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Holding Company Audit Compliance And Risk Management

Authors: Anthony Ludovic Assassa

1st Edition

6206122727, 978-6206122722

More Books

Students also viewed these Accounting questions