A parent acquired a subsidiary by issuing $2000,000 common stock and $1000,000 long term debt. This acquisition affects the cash flow statement as flow: A. Not affect the cash flow statement. B. Increase cash under investing activity section by $3000,000. C. Increase cash under financing activity section by $2000,000. D. Increase cash under financing activity section by $3000,000
A parent acquired a subsidiary by issuing $2000,000 common stock and $1000,000 long term debt. This acquisition affects the cash flow statement as flow: A. Not affect the cash flow statement. B. Increase cash under investing activity section by $3000,000. C. Increase cash under financing activity section by $2000,000. D. Increase cash under financing activity section by $3000,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.24MCE
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Question
A parent acquired a subsidiary by issuing $2000,000 common stock and $1000,000 long term debt. This acquisition affects the
A. |
Not affect the cash flow statement. |
|
B. |
Increase cash under investing activity section by $3000,000.
|
|
C. |
Increase cash under financing activity section by $2000,000.
|
|
D. |
Increase cash under financing activity section by $3000,000 |
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