A company's income statement disclosed $45,000 of investment revenue on equity method investments. The company did not purchase or dispose of any such investments during the year, yet the equity method investments account increased $30,000 during the year. What is the complete disclosure of these events in the statement of cash flows prepared under the indirect method?
a. Operating cash inflow, $45,000; $30,000 subtraction in reconciliation of earnings and net operating cash flow
b. Operating cash inflow, $15,000; $30,000 subtraction in reconciliation of earnings and net operating cash flow
c. Operating cash inflow, $15,000
d. $30,000 subtraction in reconciliation of earnings and net operating cash flow
e. None of these answers is correct.
D
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