The conversion of preferred stock into common stock would be reported in the following section of the statement of cash flows:

Question

Quizplus · Accepted Answer

The conversion of preferred stock into common stock is a non-cash transaction that affects the company's financing structure. Therefore, it is reported in the noncash investing and financing activities section of the statement of cash flows, as it does not directly impact cash flows but is significant for understanding changes in the company's capital structure.

The Conversion of Preferred Stock into Common Stock Would Be