Ultra Big Corporation,Inc.is preparing its annual report for shareholders.The statement of cash flows,which is included in the report,shows that the company sold one million shares of stock but repurchased half a million of those shares.It also shows that the company issued a ten-cent per share dividend.Where would this information be found on the statement of cash flows?
A) Cash flows from operating activities
B) Cash flows from investing activities
C) Cash flows from financing activities
D) Cash flows from current activities

Question

Quizplus · Accepted Answer

The sale and repurchase of shares as well as the payment of dividends are categorized as financing activities and would be found in the cash flows from financing activities section of the statement of cash flows.