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MacDonald, Inc. owns 80 percent of the outstanding stock of Stahl Corporation. During the current year, Stahl made $125,000 in sales to MacDonald. How does this transfer affect the consolidated statement of cash flows

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tutorAnne

Answer:it should not be reported in the consolidated statement of cash flows

Explanation: Statement of Cash Flows shows how much cash is generated and used during a given time period. The important cash flow statement are for operating activities, investing activities, and financing activities of a company therefore Stahl's $125,000 in sales to MacDonald should not be reported in the consolidated statement of cash flow.