Title: Allergan To Sell Businesses in Bid To Appease Shareholders

Link: https://www.wsj.com/articles/allergan-to-sell-businesses-in-bid-to-appease-shareholders-1527697604

Summary: Biopharmaceutical company Allergan has initiated the sale of two of its medical divisions: womens-health and infectious-disease. Combined, the annual sales generated from these two divisions totals over $1.25 billion, roughly 8% of the companys total sales. However, stock performance has been terrible; Allergan shares have declined by more than half of their value since mid-2015. Allergans Chief Executive claims that the sale of these two smaller divisions will allow the company to focus on their core business ventures and to reassure investors. Allergan claims the proceeds from the sale of the two divisions will be used to buy back shares and reduce outstanding debt.

I need help answering these 3 questions:

Questions:

1) In the given scenario, will Allergans common stock equity increase or decrease? Explain.

2) Is the repurchase of stock by Allergan considered to be an inflow or an outflow of cash? Is the repayment of debt by Allergan considered to be an inflow or an outflow of cash?

3) Which financial statement(s) does this appear on?