Avatar Company Uses the Indirect Method to Prepare Its Statement

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:
$$\begin{array} { | l | r | r | r | } \hline&2014 & 2013 & \text { Increase/decrease }\\\hline \text { Common stock } & \$ 30,000 & \$ 2,000 & \$ 28,000 \\\hline \text { Retained earnings } & 113,000 & 74,000 & 39,000 \\\hline \text { Treasury stock } & ( 8,000 & ( 5,000 ) & ( 3,000 ) \\\hline \text { Total equity } & \$ 135,000 & \$ 71,000 & \$ 64,000 \\\hline\end{array}$$

Note: There were no stock retirements during the year.
There were no sales of treasury stock during the year.
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There were no sales of treasury stock during the year.
Which of the following statements would be TRUE?

A) There was zero net cash flow from transactions involving treasury stock.
B) There was $3,000 of positive cash flow from transactions involving treasury stock.
C) There was $3,000 negative cash flow from transactions involving treasury stock.
D) There was $8,000 negative cash flow from transactions involving treasury stock.