Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC, Inc. purchased $44,000 worth of stock in the DEF Company in 2011. In 2015, the stock was sold for $87,000. Which one of the
ABC, Inc. purchased $44,000 worth of stock in the DEF Company in 2011. In 2015, the stock was sold for $87,000. Which one of the following is one effect of this transaction on the statement of cash flows if the indirect method is used during 2015?
A. An addition of $43,000 in the investing activities section
B. A subtraction of $43,000 in the investing activities section
C. A subtraction from net income of $43,000 in the operating activities section
D. An addition to net income of $87,000 in the operating activities section
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started