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10. HW5 - 6 points Assume that the two treasury s...

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10. HW5 - 6 points Assume that the two treasury stock transactions that occurred in the year ended 12/31/08 are the only treasury stock transactions that Clarence has ever had. a. What is the effect of the two treasury stock transactions on total stockholders? equity? You must indicate increase, decrease, or no effect and, if increase or decrease, provide a dollar amount. b. What is the balance in the paid-in capital-treasury stock account as of 12/31/08? i. How would your answer to part b differ if, in addition to the other two treasury stock transactions, 10,000 treasury shares were reissued on 7/2/08 for $29 per share? You must indicate higher, lower, or no difference and, if higher or lower, provide a dollar amount. c. What is the net effect of the two treasury stock transactions on cash flows for the year ended 12/31/08 (ignore the hypothetical transaction in part b(i)). Provide a dollar amount and, if the amount is not zero, indicate whether it is a cash inflow or outflow and whether it would appear as an operating, investing, or financing activity in the cash flow statement?

 

Paper#2927 | Written in 18-Jul-2015

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