Louisiana 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.
Compute the cash flow from transactions involving treasury stock.
A)zero net cash flow
B)$4500 of positive cash flow
C)$4500 negative cash flow
D)$13,000 negative cash flow

Question

Louisiana 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.
Compute the cash flow from transactions involving treasury stock.
A)zero net cash flow 
B)$4500 of positive cash flow 
C)$4500 negative cash flow 
D)$13,000 negative cash flow

Quizplus · Accepted Answer

The Answer of Louisiana 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.
Compute the cash flow from transactions involving treasury stock.
A)zero net cash flow 
B)$4500 of positive cash flow 
C)$4500 negative cash flow 
D)$13,000 negative cash flow

Louisiana Company Uses the Indirect Method to Prepare Its Statement