Long-Term Investments Assignment
points Assume that Quimby Corporation only uses the INDIRECT METHOD for computing its statement of cash flows. Selected accounts from Quimby Corp's balance sheet accounts as of December 31, 2014, and 2015 are presented below. Cash Short-term investments Accounts receivable (net) Inventory Long-term investments Plant assets Accounts payable Notes payable (nontrade) Common stock $10 par Additional paid-in capital Retained earnings December 31 2015 | 2014 | $110.000 S50.000 150 000 0 255 000 255.000 345.000 300.000 100.000 150 000 850.000 500 000 5415 000 $360,000 145.000 400.000 350.000 200.000 125.000 470.000 245.000
The proper adjustment for Retained Earnings would be Increase in cash from financing activities the amount is 5225,000. O Decrease in cash from financing activities, the amount is $225.000 O Increase in cash from operating activities: the amount is $225.000 O Retained earnings are not adjusted when preparing a Statement of Cash flows. .