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CMW is a company operating in C-land. On 01 June 20X4, CMW acquired 90% of the ordinary shares of RCO. On the date of acquisition,
CMW is a company operating in C-land. On 01 June 20X4, CMW acquired 90% of the ordinary shares of RCO. On the date of acquisition, the trade receivables of RCO are C$120,000. CMW's consolidated statements of financial position for the years ended 31 December 20X3 and 20X4 show: 20x4 20x3 Trade receivable 260,000 150,000 CMW is preparing its consolidated statement of cash flows for the year ended 31 December 20X4 under the indirect method. What is the adjustment required within cash flows from operating activities in respect of trade receivables? Solution A.C$2,000 addition. B.C$2,000 deduction. C.C$10,000 addition. D.C$10,000 deduction
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