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This transaction should be treated in the statement of cash flows as follows:
a. The purchase of the building should be investing cash outflow and the issuance of shares and the debentures financing cash outflows.
b. The purchase of the building should be investing cash outflow and the issuance of debentures as financing cash outflows while the issuanceof shares as investing cash outflow.
c. This does not belong in a cash flow statement and should be disclosed only in the footnotes to the financial statements.
d. Ignore the transaction totally since it is a noncash transaction. No mention is required in either the cash flow statement or anywhere else inthe financial statements.
C is the correct answer . cash flow statement involves the movement of cash.