Jelly Bean Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Note:1)There were no stock retirements during the year. "2)There were no sales of treasury stock during the year.
Which of the following statements would be true?"
A)There was zero net cash flow from transactions involving treasury stock.
B)There was $4,000 of positive cash flow from transactions involving treasury stock.
C)There was $4,000 negative cash flow from transactions involving treasury stock.
D)There was $12,000 negative cash flow from transactions involving treasury stock.

Question

Jelly Bean Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:  Note:1)There were no stock retirements during the year. "2)There were no sales of treasury stock during the year.
Which of the following statements would be true?"
A)There was zero net cash flow from transactions involving treasury stock. 
B)There was $4,000 of positive cash flow from transactions involving treasury stock. 
C)There was $4,000 negative cash flow from transactions involving treasury stock. 
D)There was $12,000 negative cash flow from transactions involving treasury stock.

Quizplus · Accepted Answer

The Answer of Jelly Bean Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:  Note:1)There were no stock retirements during the year. "2)There were no sales of treasury stock during the year.
Which of the following statements would be true?"
A)There was zero net cash flow from transactions involving treasury stock. 
B)There was $4,000 of positive cash flow from transactions involving treasury stock. 
C)There was $4,000 negative cash flow from transactions involving treasury stock. 
D)There was $12,000 negative cash flow from transactions involving treasury stock.

Jelly Bean Company Uses the Indirect Method to Prepare Its