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Wyoming Company Uses the Indirect Method to Prepare Its Statement

question 85

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Wyoming Company uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet: Wyoming 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 was no retirement of stock during the year. 2) There were no sales of treasury stock during the year. Which of the following statements is correct? A) There was zero net cash flow from transactions involving Common Stock. B) There was a negative cash flow of $5600 from the issuance of Common Stock. C) There was a positive cash flow of $5600 from the issuance of Common Stock. D) There was positive cash flow of $18,000 from issuance of Common Stock. Note:
1) There was no retirement of stock during the year.
2) There were no sales of treasury stock during the year.
Which of the following statements is correct?

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Definitions:

Geographic Area

A specific location or region defined by natural or artificial boundaries.

Bid-rigging

A form of fraud in which a commercial contract is promised to one party even though for the sake of appearance several other parties also present a bid.

Collusion

A secret agreement or cooperation between parties for a deceitful or fraudulent purpose, especially to cheat or deceive others.

Restrictive Trade Practice

Business practices that limit competition or control prices, often viewed negatively and regulated by law.

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