Red Manufacturing Company Owns 40% of the Outstanding Common Stock

question 42

Multiple Choice

Red Manufacturing Company owns 40% of the outstanding common stock of Blue Supply Company. During 2013, Red received a $50 million cash dividend from Blue. What effect did this dividend have on Red's 2013 statement of cash flows?

• A)Cash from operating activities increased.
• B)Cash from investing activities increased.
• C)Cash from financing activities increased.
• D)No effect.

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Definitions:

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