During 2014, the Following Items Were Reported on ShoeCo's Statement

question 20

Essay

During 2014, the following items were reported on ShoeCo's statement of cash flows in millions of dollars.
Required:
For each item, identify the type of activity it is (operating, investing, financing) and the effect it would have on the statement of cash flows. The operating activities section is prepared using the indirect method. (Enter "+" if added or "-" if subtracted. You do not need to enter dollar amounts). $\begin{array}{lr}\text { Investments in unconsolidated affiliates, purchases } & \$ 64 \\\text { Dividends received from equity affiliates } & 10 \\\text { Equity in affiliate earnings } & 38 \\\text { Available-for-sale securities, sales proceeds } & 27 \\\text { Loss on sale of available-for-sale securities } & (6) \\\text { Unrealized gain on trading securities } & 15\end{array}$

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Definitions:

Pricing Infatuation

An obsession or excessive focus on the pricing aspect of a product or service rather than its value or other attributes.

Price Cutting

A competitive strategy whereby a company lowers its product prices to attract customers and increase market share.

Sales Volume

The total number of units of a product sold within a specific time period.

Component Parts

The elements or individual items that, when combined, form a complete product or system.