Ilene South Company Owns 40% of the Outstanding Common Stock

Multiple Choice

Ilene South Company owns 40% of the outstanding common stock of Ilene Wright Company. During the year, South received a $150 million cash dividend from Wright. What effect does this dividend have on South's statement of cash flows for the year?

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