Aloe Company reports its income from its investment in Palm Company under the equity method. Aloe recognized income of $125,000 from its investment in Palm during the current year. Palm declared and paid dividends of which Aloe's share was $25,000 during the current year. The effect of these activities on the operating section of the statement of cash flows of Aloe Company prepared for the

current year under the indirect method would be
a. an increase of $125,000.
b. a deduction of $125,000.
c. a deduction of $100,000.
d. an increase of $100,000.


C

Business

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