Question

The Inn sold 10,000 shares of 5 par value common stock for 30 per share. How much would be reported as sale of common stock on the statement of cash flows?

1) 350,000
2) 300,000
3) 50,000
4) 15,000

Answer 1

The sale of common stock on the statement of cash flows for The Inn would be $300,000.

Step-by-step explanation:

The Inn sold 10,000 shares of 5 par value common stock for $30 per share. The sale of common stock on the statement of cash flows would be calculated as follows:

Sale of common stock = Number of shares sold × Selling price per share

Sale of common stock = 10,000 shares × $30 per share = $300,000

Therefore, the correct option would be 2) $300,000.