A company has paid cash to repurchase its common stock that was previously issued. Where will
this cash flow be reported on the statement of cash flows?
Lauer Corporation uses the periodic inventory system and has provided the following
information about one of its laptop computers:
Date Transaction Number of Units Cost per Unit
1/1 Beginning Inventory 250 $950
5/5 Purchase 350 $1,050
8/10 Purchase 450 $1,150
10/15 Purchase 275 $1,200
Solution
(1325-1125)*$1,200 = $240,000