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During the current year, Bradford Company purchased some of the 90,000 shares of common stock, par $7, of Hall Inc., as a long-term investment. The
During the current year, Bradford Company purchased some of the 90,000 shares of common stock, par $7, of Hall Inc., as a long-term investment. The annual accounting period for each company ends December 31. The following transactions occurred during the current year: Jan. 7 Purchased 40,500 shares of Hall stock at $35 per share Dec. 31: a. Received the current year financial statements of Hall, which reported net income of $220,000 b. Hall declared and paid a cash dividend of $1.50 per share. c. Determined that the current market price of Hall stock was $46 per share. Required: Indicate how the Operating Activities and Investing Activities sections of the cash flow statement (indirect method) will be affected by each transaction. (Cash outflows should be indicated by a minus sign.) BRADFORD COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, Current Year Operating activities: Investing activities
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