Exercise $12-12$A $($Algo$)$ Determining cash flows from financing activities LO $12-4$

On January $1,$ Year $1,$ Hardy Company had a balance of $$106,500$ in its Common Stock account. During Year $1,$ Hardy paid $$35,500$ to

purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account on

December $31,$ Year $1,$ was $$136,000.$ Assume that the common stock is no par stock.

Required

a$.$ Determine the cash inflow from the issue of common stock.

Cash inflow from the issue of common stock

b$.$ Prepare the financing activities section of the Year $1$ statement of cash flows.

Note: Amounts to be deducted should be indicated with a minus sign.