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    ACCTGUY's Avatar
    ACCTGUY Posts: 22, Reputation: 1
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    #1

    Mar 26, 2013, 07:57 PM
    CASH FLOW STATEMENT - Treasury Stock Impact
    I am creating Cash flow statement.
    But I don't understand treasury stock section and its impact on cash flow statement.

    In Balance SHEET it says

    Common Stock held in Treasury at cost
    2011 (6146) and 2012 (6004)

    Common Stock issue from treasury for stock options 802
    Repurchase of Common Stock 1384

    Treasury Stock
    Opening Book Value 6146
    Repurchase 1384
    Issue Proceeds (802)
    Compensation EXP (724)
    Ending BOOK VALUE ( 6004)

    Now what do I have to show in CASH FLOW STATEMENT Financing Activities SECTION.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Mar 27, 2013, 02:03 AM
    They are financing activities as you have identifed and you have identified the inflows and outflows so basically your problem is how to caption these transactions

    Share based compensation is not a cash flow so you are left with stock repurchased and stock issued
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