Pursley, Inc A)Option a
B)Option B
C)Option C
D)Option D
E)Option E

question 25

Multiple Choice

Pursley, Inc. owns 70 percent of Harry Corp. The consolidated income statement for a year reports $50,000 Non-controlling Interest in Harry Corp.'s Income. Harry paid dividends in the amount of $80,000 for the year. What are the effects of these transactions in the consolidated statement of cash flows for the year? $$\begin{array} { | l | l | l | } \hline & \text { Financing Activities } & \text { Operating Activities } \\\hline \text { A) } & \text { Increased by } \$ 24,000 & \text { Increased by } \$ 15,000 \\\hline \text { B) } & \text { Decreased by } \$ 15,000 & \text { Unaffected } \\\hline \text { C) } & \text { Unaffected } & \text { Decreased by } \$ 15,000 \\\hline \text { D) } & \text { Decreased by } \$ 24,000 & \text { Unaffected } \\\hline \text { E) } & \text { Unaffected } & \text { Increased by } \$ 24,000 \\\hline\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D
• E)Option E

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Definitions:

Law Of Comparative Advantage

is an economic principle that states countries (or entities) gain when they produce goods and services for which they have a lower opportunity cost, leading to more efficient global production.

Low-Opportunity Cost Producer

An entity that can produce a good or service at a lower sacrifice of alternative goods compared to others.

Trading Nation

A country whose economy heavily depends on international trade, importing and exporting goods and services as a significant portion of its gross domestic product (GDP).