Multiple Choice
Stahl Corporation owns 80 percent of the outstanding stock of MacDonald,Inc.During the current year,MacDonald made $125,000 in sales to Stahl.How does this transfer affect the consolidated statement of cash flows?
A) Include 80 percent as a decrease in the investing section.
B) Include 100 percent as a decrease in the investing section.
C) Include 80 percent as a decrease in the operating section.
D) Include 100 percent as an increase in the operating section.
E) Not reported in the consolidated statement of cash flows.
Correct Answer:

Verified
Correct Answer:
Verified
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