Answers
Answer
Issuance of Stock generated the cash for the acquisition of plant assets.
Explanation:
In Case A, it can be clearly seen that there is purchase and cash outflow of $ 102,000 for the purchase of plant assets.
If there is cash outflow that cash must have been receib=ved from somewhere. It is clear from the cash flow statement that cash of $ 119,000 was received from the issue of stock. So, the Issuance of Stock generated the cash for the acquisition of plant assets.
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