單項選擇題
1、Earlier this year, Barracuda Company issued 5,000 employee stock options. Recently, 2,000 options were exercised at a price of $10 per share. To avoid dilution, Barracuda purchased 2,000 shares at an average price of $12 per share. Barracuda reported both transactions as financing activities in its cash flow statement. For analytical purposes, what adjustment is necessary to better reflect the substance of the stock repurchase?
Operating cash flow Financing cash flow
A. Decrease $4,000 No adjustment
B. No adjustment Increase $4,000
C. Decrease $4,000 Increase $4,000