Final answer:
The issue of 150,000 shares of common stock by Mama Mia restaurant Inc. will affect the financing activities section of the cash flow statement, as it represents a cash inflow from equity financing.
Step-by-step explanation:
The cash flow section that will be affected by the transaction where Mama Mia restaurant Inc. issued 150,000 common stock with a par value of $5 for $30 per share is the financing activities section. When a company issues stock, it is obtaining financing from shareholders, and the resulting cash flow is recorded in the financing section of the cash flow statement. This is generally separate from the operating and investing sections which include income from the company's main business activities and cash flows related to investment purchases or sales, respectively.
The transaction described affects the company's equity structure and involves a cash inflow from the sale of the common stock, which increases both the company's cash balance and its contributed capital on the balance sheet. As per accounting principles, in the cash flow statement, this inflow is shown as a positive figure under the financing activities to reflect the increase in cash.