A company reports the following? balances: ?12/31/2017 ?12/31/2018 Common Stock

Question

A company reports the following? balances: ?12/31/2017 ?12/31/2018

Common Stock ?$15,000 ? $156,000

Paid?in Capital in Excess of Par ? $98,000 $?107,000

Retained Earnings ? $66,000 $?76,000

A. Financing Activity: Sale of Common Stock, $141,000

B. Financing Activity: Sale of Common Stock, $150,000

C. Operating Activity: Net Income $10,000

D. B and C

What is reported on the statement of cash flows prepared with the indirect method for the year ended December? 31, 2018? Assume there were no retirements of common stock during 2018. No dividends were declared in 2018.

Explanation / Answer

Financing Activity: Sale of Common Stock, $150,000 Operating Activity: Net Income $10,000 Option D is correct

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