Kermit Productions purchased $44,000 worth of stock in the Enterprise Company in 2010. In 2014, the stock was sold for $87,000. Which one of the following is one effect of this transaction on the statement of cash flows if the indirect method is used during 2014?
A) An addition of $43,000 in the investing activities section
B) A subtraction of $43,000 in the investing activities section
C) A subtraction from net income of $43,000 in the operating activities section
D) An addition to net income of $87,000 in the operating activities section
Correct Answer:
Verified
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