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Early in 2018, Larsen Corporation purchased marketable securities at a cost of $90,000. In September, dividends of

$6,600 were received; Larsen sold the securities in December at a gain of $5,600. How would these transactions be reported on Larsen's statement of cash flows for 2018?

a)$95,600 net cash provided by investing activities; $6,600 included in cash provided by operating activities.

b)$12,200 net cash provided by investing activities.

c)$84,400 net cash used in investing activities; $95,600 cash provided by investing activities. !Incorrect

d)$5,600 net cash provided by investing activities; $6,600 included in cash provided by operating activities.

I chose c, which was incorrect, which one is correct and why?

Top Answer

Answer d)$5,600 net cash provided by... View the full answer

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