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

Investing activity in a statement of cash flow shows cash outflows occurred on purchase of assets or…

Answered: A parent acquired a subsidiary by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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