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A Company's Income Statement Disclosed $45,000 of Investment Revenue on Equity

Question 41

Multiple Choice

A company's income statement disclosed $45,000 of investment revenue on equity method investments.The company did not purchase or dispose of any such investments during the year,yet the equity method investments account increased $30,000 during the year.What is the complete disclosure of these events in the statement of cash flows prepared under the indirect method?


A) Operating cash inflow,$45,000;$30,000 subtraction in reconciliation of earnings and net operating cash flow
B) $30,000 subtraction in reconciliation of earnings and net operating cash flow
C) Operating cash inflow,$15,000;$30,000 subtraction in reconciliation of earnings and net operating cash flow
D) Operating cash inflow,$15,000

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