On January 1, Year 1, Hardy Company had a balance of $102,500 in its Common Stock account. During Year 1, Hardy paid $45,800 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 $141,000. 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.

Outline a:

Outline b:

On January 1, Year 1, Hardy Company had a balance of $102,500 in its Common Stock account. During Year 1, Hardy paid $45,800 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 $141,000. 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. Complete this question by entering your answers in the tabs below. Determine the cash inflow from the issue of common stock. On January 1, Year 1, Hardy Company had a balance of $102,500 in its Common Stock account. During Year 1, Hardy paid $45,800 to purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account an December 31 , Year 1, was $141,000. 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. Complete this question by entering your answers in the tabs below. Prepare the financing activities section of the Year 1 statement of cash flows. (Cash outhows should be indicated with a minus sign.)