Wolff Corporation Owns 70% of the Outstanding Stock of Sanders

question 43

Multiple Choice

Wolff corporation owns 70% of the outstanding stock of Sanders, Inc. During the current year, Sanders made $75,000 in sales to Wolff. How does this transfer affect the consolidated statement of cash flows?

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

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