Wyoming Company Uses the Indirect Method to Prepare Its Statement

Multiple Choice

Wyoming Company uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet: $\begin{array}{c}\text { Wyoming Company}\\\text { Comparative Balance Sheet}\\\text { December 31,2018 and 2017}\\\begin{array}{|l|r|r|r|}\hline&2018 & 2017 & \text { Increase/(Decrease) }\\\hline \text { Common Stock } & \$ 18,000 & \$ 12,400 & \$ 5600 \\\hline \text { Retained Earnings } & 113,000 & 80,000 & 33,000 \\\hline \text { Treasury Stock } & (8000 & (5400) & (2600 \\\hline \text { Total Equity } & \$ 123,000 & \$ 87,000 & \$ 36,000\\\hline\end{array}\end{array}$ 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.