Ace Co. issued 1,000 shares of its $10 par value common stock for $15 per share in cash. How should this transaction be reported in Ace’s statement of cash flows for the year of issuance?

  1. $15,000 cash inflow from financing activities.
  2. $10,000 cash inflow from financing activities and $5,000 adjustment to arrive at cash flows from operating activities.
  3. $15,000 cash flow from investing activities.
  4. $10,000 cash flow from investing activities and $5,000 adjustment to arrive at cash flows from operating activities.

 

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