10, Nancy Drew Company owns 30% interest (Equity Method) in the stock ofFinley Corporation. During the year, Finley pays $25,000 in dividends, and reports $100,000 in net income. Nance Company's investment in Finley will increase by A) $25,000. B) $30,000. C) $24,000. D) $22,500. 11. If 10% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is A) the Cost method. B) the Equity method. C) the preparation of Consolidated Financial Statements. D) determined by agreement with whomever owns t the remaining 90% of the stock. 12. On January 1, 2011, Bartley Corp paid s800,000 for 100,000 shares of Oak Company's common stock, which represents 40% of Oak's outstanding common stock. Oak reported net income of s200,000 and paid cash dividends of S60,000 during 2011. Bartley should report the total Net Book Investment in Oak Company on its December 31, 2011, balance sheet at: (Equity Method) A) $800,000 B) $744,000 C) $824,000 D) $856,000 13. Accounts receivable (A/R) arising from sales to customers amounted to $80,000 (BI) and S70,000 (ElD at the beginning (BI) and end (EI) of the year, respectively.Net income (NI) reported on the income statement for the year was $280,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is (Cash Flow - OPS) A) $280,000. B) $290,000. C) $350,000. D) $270,000