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.
Indicate whether the amount results in an increase or decrease in cash.
Definitions:
High Dividend Policy
A strategy by which companies pay out a significant portion of their profits in the form of dividends to their shareholders.
Percentage
A mathematical concept that represents a fraction of 100, commonly used to quantify the relative size of one quantity as a fraction of another.
Strict Residual Dividend
A dividend policy under which dividends are paid from the residual or leftover equity only after all project capital needs are met, prioritizing investment over dividends.
Stable Pattern
A stable pattern indicates consistent and predictable behavior or trends over a period of time.
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