King Company purchased 30% of Andei Company for $2,500,000 at the beginning of the current year.Andei earned $400,000 and declared and paid $300,000 of dividends during the current year.Which of the following correctly describes the effect of these transactions on the statement of cash flows of King Company prepared under the indirect method?

Question

King Company purchased 30% of Andei Company for $2,500,000 at the beginning of the current year.Andei earned $400,000 and declared and paid $300,000 of dividends during the current year.Which of the following correctly describes the effect of these transactions on the statement of cash flows of King Company prepared under the indirect method?
King Company purchased 30% of Andei Company for $2,500,000 at the beginning of the current year.Andei earned $400,000 and declared and paid $300,000 of dividends during the current year.Which of the following correctly describes the effect of these transactions on the statement of cash flows of King Company prepared under the indirect method?

Quizplus · Accepted Answer

The Answer of King Company purchased 30% of Andei Company for $2,500,000 at the beginning of the current year.Andei earned $400,000 and declared and paid $300,000 of dividends during the current year.Which of the following correctly describes the effect of these transactions on the statement of cash flows of King Company prepared under the indirect method?

King Company Purchased 30% of Andei Company for $2,500,000 at the Beginning