Howard Company uses the direct method to prepare its operating activities section of the statement of cash flows.
Indicate how each event affects net income and the three types of activities on the statement of cash flows. In the net income column, use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate that the income statement is not affected. In the three cash flow columns, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate that the cash flow statement is not affected.
On September 10, Year 1, Howard Company received a check for $250 for dividends on Troxell Corporation stock that Howard holds as an investment. Show the effects of this transaction on Howard's income statement and statement of cash flows.

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The Answer of Howard Company uses the direct method to prepare its operating activities section of the statement of cash flows.
Indicate how each event affects net income and the three types of activities on the statement of cash flows. In the net income column, use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate that the income statement is not affected. In the three cash flow columns, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate that the cash flow statement is not affected.
On September 10, Year 1, Howard Company received a check for $250 for dividends on Troxell Corporation stock that Howard holds as an investment. Show the effects of this transaction on Howard's income statement and statement of cash flows.

Howard Company Uses the Direct Method to Prepare Its Operating