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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?

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$335,000 increase

$350,000 decrease

$400,000 decrease

$15,000 increase

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