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Forest Company owns 40% of the common shares of Petal Incorporated. They purchased the shares at the beginning of the year for $350,000 cash. The
Forest Company owns 40% of the common shares of Petal Incorporated. They purchased the shares at the beginning of the year for $350,000 cash. The year end financial statements for Petal showed a loss of $50,000 and Flower also received dividends in the amount of $15,000. What is the net effect on Forest's cash related to the investment of Petal for the year?
Select an answer from the options below
$335,000 increase
$350,000 decrease
$400,000 decrease
$15,000 increase
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