Determining Cash Flow Statement Effects of Investments for Significant Influence During 2011, Bradford Company purchased some of the 90,000 shares of common stock, par $6, of Hall, Inc., as a long term investment. The annual accounting period for each company ends December 31. The following transactions occurred during 2011:
Jan. 7 Purchased 40,500 shares of Hall stock at $30 per share.
Dec. 31 a. Received the 2011 financial statements of Hall, which reported net income of $215,000.
b. Hall declared and paid a cash dividend of $1.50 per share.
c. Determined that the current market price of Hall stock was $41 per share.
Required:
Indicate how the Operating Activities and Investing Activities sections of the cash flow statement (indirect method) will be affected by each transaction