Exercise $14-12$A $($Algo$)$ Determining cash flows from financing activities LO $14-4$

On January $1,$ Year $1,$ Finch Company had a balance of $$103,000$ In Its Common Stock account. During Year $1,$ Finch pald $$27,000$ 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 $$139,000.$ 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 Year $1$ statement of cash flows.

Answer is complete but not entirely correct.

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Required B

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

Note: Cash outflow should be indicated with a minus sign.