The following selected account balances relate to the shareholders' equity accounts of Valerio Corp.:

Additional information:
1. The company reacquired and retired 500 preferred shares in 2012. The preferred shares were originally issued at an average cost of $50,000.
2. During the year, 10,000 common shares were issued. No common shares were repurchased.
3. The company reported another comprehensive loss of $10,000 in 2012 from the revaluation of land to fair value
Instructions
(a) Determine the amounts of any cash inflows or outflows related to the shareholders' equity accounts in 2012.
(b) Indicate where each of the cash inflows or outflows identified in (a) would be classified on the statement of cash flows or accompanying notes.
(c) Would you expect a growing company to be generating or using cash for its financing activities? Explain.

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2012 2011 Preferred shares, 2,250 shares in 2012; 2,750 in 2011 Common shares, 50,000 shares in 2012;40,000 in 2011 Contributed c Retained earnings Accumulated other comprehensive income Cash dividends-preferred Dividends payable $225,000 600,000 35,000 500,000 40,000 11,250 2,812 $275,000 400,000 50,000 300,000 50,000 13,750 3,438 apital-reacquired preferred shares