On the Basis of the Details of the Common Stock

question 99

Essay

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in financing section of the statement of cash flows. Assume any stock issues were at par.
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Indicate whether the amount results in an increase or decrease in cash.

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Definitions:

FIFO Method

First In, First Out method; an inventory valuation approach where goods produced or acquired first are sold or used first.

Units Transferred

The number of units moved from one production process or department to another.

Units Started

The number of production units that have begun the manufacturing process within a specific period.

FIFO Method

A stock valuation method where the first items purchased or produced are the first ones removed from inventory, standing for "First-In, First-Out".