Question: During 2015 Oscar Company purchased some of the 90 000 common

During 2015, Oscar Company purchased some of the 90,000 common shares of Selma Inc. as a non-current investment. The fiscal year for each company ends on December 31. The following transactions occurred during 2015:
Jan. 7 Purchased 40,500 of Selma’s shares at $ 33 per share.
Dec. 31 a. Received the 2014 financial statements of Selma, which reported net earnings of $ 220,000.
b. Selma declared and paid a cash dividend of $ 2 per share.
c. Determined that the current market price of Selma’s stock was $ 40 per share.
Indicate how the operating activities and investing activities sections of the statement of cash flows (indirect method) will be affected by each transaction.

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  • CreatedAugust 04, 2015
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