On January 1, 2011, Graves Company had a balance of \(\$ 200,000\) in its Common Stock account. During 2011, Graves paid \(\$ 15,000\) to purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account on December 31, 2011, was \(\$ 240,000\). 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 2011 statement of cash flows.