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aleksklad [387]
3 years ago
15

Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi

s investment using the Equity Method. For the year ended December 31, YR01, Affiliate Co. reported net income of $1,000. Also, during YR01 the company declared and paid cash dividends totaling $200 to holders of its common stock. Given these facts, how will the Operating, Investing, and Financing sections of the statement of cash flows for Parent Inc. be affected (assume use of the indirect method of presentation)
Business
1 answer:
blondinia [14]3 years ago
4 0

Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

    <u>Cr Cash 5,000</u>

December 31, dividends received

<u>Dr Cash 60</u>

    Cr Investment in Affiliate 60

December 31, Affiliate reports net income

Dr Investment in Affiliate 300

    Cr Revenue from investing activities 300

Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

  • Decrease by $5,000 due to the purchase of stocks.
  • Increase by $60 due to the dividends received.
  • net cash from investing activities = -$4,940

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Answer:

A. True

Explanation:

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So the given statement is true as the open source software deals with the source code that should be released in a license where the copyright holder would granted the users to have the right to use the same

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2 years ago
When robbers consider the selection of a target, they consider how lucrative an establishment is and _____________
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The risk of arrest.

Explanation:

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3 years ago
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Explanation:

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Marginal cost is the additional cost involved in manufacturing a product with an additional service, due to the additional manufacturing of the product.

These two measures determine how the value of a product should change; if the price increases or decreases due to marginal benefit or marginal cost.

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<em>I hope this information can help you.</em>

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Between 1986 and 1998 the De Beers company controlled the world diamond market. De Beers and its affiliated association of produ
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The correct answer is option A.

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