MacDonald, Inc

question 82

Multiple Choice

MacDonald, Inc. owns 80% of the outstanding stock of Stahl Corporation. During the current year, Stahl made $125,000 in sales to MacDonald. How does this transfer affect the consolidated statement of cash flows?

• A) Include 80% as a decrease in the investing section.
• B) Include 100% as a decrease in the investing section.
• C) Include 80% as a decrease in the operating section.
• D) Include 100% as an increase in the operating section.
• E) Not reported in the consolidated statement of cash flows.

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