Red Manufacturing Company Owns 40% of the Outstanding Common Stock

Multiple Choice

Red Manufacturing Company owns 40% of the outstanding common stock of Blue Supply Company. During 2013, Red received a $50 million cash dividend from Blue. What effect did this dividend have on Red's 2013 statement of cash flows?

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