The following excerpts, all of which related to the equity investment account, were taken from the 2012 annual report of AT&T (dollars in millions):

REQUIRED:
a. The statement of cash flows indicates that $157 in equity investments in affiliates were sold in 2012. Estimate how much was invested in affiliates during 2012.
b. What would you expect to see on AT&€™s 2012 statement of cash flows related to this investment activity?
c. Explain why equity income is or is not a good measure of the cash AT&T received from its equityinvestments.

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2012 2011 BALANCE SHEET Investment in affiliates INCOME STATEMENT Equity in net income of affiliates FOOTNOTES Dividends received from affiliates $4,581 $3,718 752 784 137