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How do intra-entity sales of inventory affect the preparation of a consolidated statement of cash flows? A.They must be added in calculating cash flows from

  • How do intra-entity sales of inventory affect the preparation of a consolidated statement of cash flows?
  • A.They must be added in calculating cash flows from investing activities.
  • B.They must be deducted in calculating cash flows from investing activities.
  • C.They must be added in calculating cash flows from operating activities.
  • D.Because the consolidated balance sheet and income statement are used in preparing the consolidated statement of cash flows, no special elimination is required.
  • E.They must be deducted in calculating cash flows from operating activities.

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