Answer:
Incorrect Statement about the Statement of Cash Flows:
c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.
Explanation:
Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.
Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections. Â The operating activities section show the cash flows from the normal business of the enterprise. Â The investing activities section shows the acquisition and disposal of investments made by the company in cash. Â While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.