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The result of this transaction should be shown in the Investing Activities Section of James’ Statement of Cash Flows as
a. Zero.
b. $50,000.
c. $100,000.
d. $150,000.
Answer will be D. $150,000 should be added in Investing Activities as that is the inflow of Cash. And also the profit of $50,000 should be reduced from Operating Activities.
d. $150,000.
Cash Inflow would be $150,000, although Profit is $50,000
150000 Is correct option if the nature of stock was not for daily resale inventory of business. otherwise decrease in inventory should be added to operating activity.
150,000 dollars........................................
Answer is D. The cash inflow of $150,000.00 should be reflected in the investing section of the Cash Flow Statement.
d. $150,000. should be shown in the Investing Activities Section of James’ Statement of Cash Flows
D...............................................................................
answer is150,000.00 >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>