Jones Company elected to use the cumulative earnings approach for distributions from its equity- method investment purchased at the beginning of 20X1. During 20X1, Jones earned $200,000 on the investment and received $210,000 in dividends. In the investing activities section of the statement of cash flows prepared under the direct method, Jones reports dividends of: $210,000. $200,000. $10,000. $0. In the operating activities section of the statement of cash flows prepared under the direct method, Jones reports dividends of: $210,000. $200,000. $10,000. $0.